Lok Sabha Question No. 2080 (UNSTARRED), answered on 2021-08-02
Subject: Inclusion in Schedule VII of the Companies Act, 2013
Ministry: CORPORATE AFFAIRS
Asked by: Abdul Majeed Ariff

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 2080 ANSWERED ON MONDAY, AUGUST 02, 2021/ SRAVANA 11, 1943 (SAKA)

## INCLUSION IN SCHEDULE VII OF THE COMPANIES ACT, 2013

## QUESTION

2080.  ADV. A.M. ARIFF: Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a)  details  of  the  items  included  in  the  Schedule  VII  of  the  Companies Act, 2013, which  lists  the  areas  and  activities  where  Corporate  Social  Responsibility  (CSR) contributions can be made;
- (b) whether the Government intends to include more items in the said Schedule to qualify them as admissible CSR expenditure;
- (c) whether the Government has received any representation from the State of Kerala on  including  donations  to  the  Chief  Minister's  Distress  Relief  Fund  in  the  said Schedule; and
- (d) if so, the action taken thereon?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS

[RAO INDERJIT SINGH]

- (a): The Government provides the broad framework for Corporate Social Responsibility  (CSR)  through  Section  135  of  the  Companies  Act,  2013  ('Act'), Schedule VII of the Act and Companies (CSR Policy) Rules, 2014. Schedule VII of the Act indicates the activities that can be undertaken as CSR which broadly relates to Health, sanitation, education, environment, sports, heritage, art and culture, rural development,  slum  area  development,  Disaster  management,  including  relief, rehabilitation,  and  reconstruction  activities,  setting  up  old  age  homes,  day  care centers,  measures  for  reducing  inequalities  faced  by  socially  and  economically backward groups etc. The Ministry vide General Circular no. 21/2014 dated 18th June, 2014  clarified  that  items  mentioned  in  Schedule  VII  are  broad  based  and  can  be interpreted liberally. A copy of Schedule VII of the Act is given at Annexure.
- (b): There is no proposal, at present, to include more items in the Schedule VII of the Act.
- (c) & (d): Yes, Sir. The representations from the State of Kerala for inclusion of the contribution to the 'Chief Minister's Distress Relief Fund' in Schedule VII of the Act were received in the year 2018 and 2020 respectively, and the same were duly replied by the Ministry.

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## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 2080 FOR 02.08.2021

Activities  which  may  be  included  by  companies  in  their  Corporate  Social  Responsibility Policies Activities relating to:

(i) eradicating hunger, poverty and malnutrition; promoting health care including preventive health care and sanitation including contribution to the 'Swachh Bharat Kosh' setup  by  the  Central  Government  for  the  promotion  of  sanitation  and  making  available  safe drinking water;

(ii) promoting education, including special education and employment enhancing vocation skills  especially  among  children,  women,  elderly,  and  the  differently  abled  and  livelihood enhancement projects;

(iii) promoting gender equality and empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centres and such other facilities for senior  citizens  and  measures  for  reducing  inequalities  faced  by  socially  and  economically backward groups;

(iv) ensuring  environmental  sustainability,  ecological  balance,  protection  of  flora  and fauna, animal welfare, agro forestry, conservation of natural resources and maintaining quality of soil, air and water including contribution to the 'Clean Ganga Fund' set-up by the Central Government for rejuvenation of river Ganga;

- (v) protection of national heritage, art and culture including restoration of buildings and sites  of  historical  importance  and  works  of  art;  setting  up  public  libraries;  promotion  and development of traditional arts and handicrafts;
- (vi) measures for the benefit of armed forces veterans, war widows and their dependents, Central Armed Police Forces (CAPF) and Central Para Military Forces (CPMF) veterans, and their dependents including widows;

(vii) training to promote rural sports, nationally recognized sports, paralympic sports and Olympic sports;

(viii) contribution to the Prime Minister's National Relief Fund or Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund)  any other fund set up by  the  Central  Government  for  socio-economic  development  and  relief  and  welfare  of  the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women;

(ix) (a)  Contribution  to  incubators  or  research  and  development  projects  in  the  field  of science, technology, engineering and medicine, funded by the Central Government or State Government or Public Sector Undertaking or any agency of the Central Government or State Government; and

(b) Contributions to public funded Universities; Indian Institute of Technology (IITs); National Laboratories and autonomous bodies established under Department of Atomic Energy (DAE); Department of Biotechnology (DBT); Department of Science and Technology (DST); Department of  Pharmaceuticals;  Ministry  of  Ayurveda,  Yoga  and  Naturopathy,  Unani,  Siddha  and Homoeopathy (AYUSH); Ministry of Electronics and Information Technology and other bodies, namely Defense Research and Development Organisation (DRDO); Indian Council of Agricultural  Research  (ICAR);  Indian  Council  of  Medical  Research  (ICMR)  and  Council  of Scientific  and  Industrial  Research  (CSIR),  engaged  in  conducting  research  in  science, technology,  engineering  and  medicine  aimed  at  promoting  Sustainable  Development  Goals (SDGs).

(x) rural development projects.

(xi) slum area development.

Explanation- For the purpose of this item, the term 'slum area' shall mean any area declared as such by the Central Government or any State Government or any other competent authority under any law for the time being in force.

(xii)     disaster management, including relief, rehabilitation and reconstruction activities.

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