Ministry of Corporate Affairs (“MCA”) has issued clarification by circular no 05/ 2021 dated April 22, 2021, on the spending of CSR funds for setting makeshift hospitals and temporary COVID care centres in continuation to the MCA’s General Circular No. 10/2020 dated March 23, 2020, wherein it was clarified that spending of CSR funds for COVID-19 is an eligible CSR activity.
It has been 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 the promotion of health care, including preventive health care, and disaster management respectively.
The companies may undertake the activities in consultation with State Governments subject to fulfilment of Companies (CSR Policy) Rules, 2014 and the circulars related to CSR issued by this MCA from time to time.
MCA has clarified that makeshift hospitals and temporary COVID care centres are an eligible CSR Activity.
