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Setting up hospitals, COVID care facilities to come under CSR

Setting up hospitals, COVID care facilities to come under CSR

Setting up hospitals, COVID care facilities to come under CSR
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By CNBCTV18.com Apr 23, 2021 12:31:33 PM IST (Published)

Under the company law, a certain category of profitable entities is required to spend at least 2% of their three-year annual average net profit towards CSR.

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Expenses incurred by corporates to set up makeshift hospitals and temporary COVID care facilities will qualify as activities under corporate social responsibility (CSR), the Centre said on Thursday.
In its notification, the Ministry of Commerce said, "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 the company law, a certain category of profitable entities is required to spend at least 2 percent of their three-year annual average net profit towards CSR.
The fresh notification comes at a time when India has clocked over 300,000 cases for two consecutive days. On Thursday, India recorded over 3.33 lakh new COVID-19 cases and 2,247 new deaths as people across the country struggled to get beds, ventilators and oxygen supplies. Not just that, many states have also reported a shortage of vaccine doses.
In March 2020, when the pandemic began, the Centre said that spending of funds on COVID-19 was an eligible CSR activity. In August 2020, the MCA said the R&D spending on Covid-19 vaccines, drugs, and medical devices was also an eligible CSR activity.
Earlier this year, in another clarification the Ministry of Commerce said that funds utilized on awareness campaigns and public outreach programs to promote vaccination against the novel coronavirus will also be an eligible CSR activity.
Following an exponential rise in the COVID-19 cases and resulting deaths as the second wave envelopes the country, the Narendra Modi-led government earlier this week allowed everyone above the age of 18 to register for vaccination from May 1.
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