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Spending funds on temporary COVID treatment centers and makeshift hospitals is eligible for CSR

Spending money to set up makeshift covid-19 clinics and temporary treatment centers, according to the government, is a qualified corporate social responsibility operation.

The Ministry of Corporate Affairs issued a circular announcing the change. On April 22, the Ministry of Corporate Affairs (MCA) explained that using Corporate Social Responsibility (CSR) funds to "set up makeshift hospitals and temporary COVID treatment facilities" is an appropriate CSR practice.

"The companies can engage in the above activities in consultation with state governments," the MCA order said, "subject to compliance with the Companies (CSR) Rules, 2014 and the circulars relating to CSR issues issued by this Ministry from time to time."

The MCA released an order on January 22 this year clarifying that using CSR funds on educational drives and public engagement programs to support COVID-19 vaccination will be deemed a qualified CSR operation.

When the first wave of covid-19 cases struck in March last year, the World Health Organization declared the disease a pandemic, the ministry approved the use of spending funds for covid-19 as a qualified CSR operation. The step on Thursday was a confirmation of last year's circular.

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