Government permits CSR spending for makeshift Covid hospitals
NEW DELHI: The Centre has allowed corporates to classify spending on setting up makeshift Covid-19 treatment centres under their Corporate Social Responsibility (CSR) fund.
In a statement, the central government said, “... wherein it was clarified that spending of CSR funds for Covid-19 is an eligible CSR activity, it is further clarified that spending of CSR funds for ‘setting up makeshift hospitals and temporary COVID Care facilities’ is an eligible CSR activity under item nos. (i) and (xii) of Schedule VII of the Companies Act, 2013 relating to promotion of health care, including preventive health care, and, disaster management respectively”.
The order from the Ministry of Corporate Affairs (MCA) added that the companies may undertake the aforesaid activities “in consultation with state governments subject to fulfillment of Companies (CSR) Rules, 2014”.
On January 22 this year, the ministry had also issued a similar order saying that spending funds on awareness campaigns and public outreach programmes to promote vaccination against the infectious disease would be considered as an eligible candidate for CSR activity.
On Wednesday, India added more than 300,000 cases while over 2,000 patients died, both new records. The order will help many company to come forward to set up such hospitals with oxygen facilities.