Lok Sabha Question No. 5077 (UNSTARRED), answered on 2022-04-04
Subject: Use of CSR Funds for COVID-19 Relief Works
Ministry: CORPORATE AFFAIRS
Asked by: Sunil Baburao Mendhe

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 5077 ANSWERED ON MONDAY, APRIL 04, 2022/ CHAITRA 14, 1944 (SAKA)

## USE OF CSR FUNDS FOR COVID-19 RELIEF WORKS QUESTION

5077. SHRI SUNIL BABURAO MENDHE:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether it is a fact that the Government has granted permission to public and private sector companies to spend their Corporate Social Responsibility (CSR) fund for the relief works related to Covid-19;
- (b) if so, the details of funds spent by the public and private sector companies for the relief  works  related  to  Covid-19  in  Maharashtra  including  district  Bhandara-Gondia during the year 2020 to 2021; and
- (c) the details of funds spent by public and private sector companies on the COVID-19 vaccination related awareness and public outreach campaigns and establishment of temporary hospitals?

## 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)  to  (c):    The  broad  framework  for  Corporate  Social  Responsibility  (CSR)  has  been provided under 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 eligible list  of  activities  that  can  be  undertaken  by  the  companies  as  CSR.  The  Ministry  vide General Circular no. 21/2014 dated 18th June, 2014 and 14/2021 dated 25 th  August, 2021 had  clarified  that  items  mentioned  in  Schedule  VII  are  broad  based  and  can  be interpreted liberally. Further, Ministry vide General Circular no.10/2020 dated 23.03.2020 had clarified that CSR funds may be spent by the companies for various activities related

Cond…2

to  COVID-19  under  item  no.  (i)  and  (xii)  promoting  healthcare  including  preventive healthcare  and  sanitation,  and  disaster  management  respectively.  Subsequently, Ministry vide General Circular no. 01/2021 dated 13.01.2021 had clarified that spending of  CSR  funds  for  carrying  out  awareness  compaigns/programmes  or  public  outreach campaigns on COVID-19 vaccination programme is an eligible CSR activity. Furthermore, vide General Circulars no. 05/2021, 09/2021 and 13/2021 dated 22.04.2021, 05.05.2021 & 30.07.2021 respectively, Ministry had also clarified that spending of CSR funds for setting up  makeshift  hospitals  and  temporary  COVID  care  facilities  and  'creating  health infrastructure for COVID care', 'establishment of medical oxygen generation and storage plants', 'manufacturing and supply of Oxygen concentrators, ventilators, cylinders and other medical equipment for countering COVID-19' and COVID-19 vaccination for persons other than the employees and their families, are eligible CSR activities.

As per input provided by Department of Public Enterprises(DPE), DPE has been issuing guidelines from the financial year 2018-19 to all administrative Ministries and Central Public Sector Enterprises (CPSEs) for adopting a theme-based focused approach every year on CSR expenditure by the CPSEs. The theme for the year 2021-22 was 'Health & Nutrition, with special focus on COVID related measures including setting up makeshift hospitals and temporary COVID care facilities'.

Under the Act, CSR is a Board driven process and the Board of the company is empowered to plan, decide, execute and monitor CSR activities based on the recommendations of its CSR Committee. The CSR framework is disclosure based and CSR mandated companies are required to file details of CSR activities annually in MCA21 registry. All data related to  CSR  filed  by  companies  in  MCA21  registry  is  available  in  public  domain  at www.csr.gov.in. CSR expenditure w.r.t. relief works related to COVID-19 is not required to be filed separately by the companies, however, the same is covered under the broader ambit  of  'Healthcare'  development  sector.  On  the  basis  of  the  filings  made  by  the companies in the MCA21 registry, details of CSR funds spent in 'healthcare' development sector  by  Public  Sector  Undertakings  (PSUs)  and  Private  companies,  in  the  State  of Maharashtra and in the districts of Bhandara and Gondia during the Financial Year (FY) 2019-20 and 2020-21 is as follows:

(in Rs. Cr.)

| State/District   |   FY 2019-20 |   FY 2020-21 |
|------------------|--------------|--------------|
| Maharashtra      |      1068.39 |       789.24 |
| Bhandara         |         0.39 |         1.01 |
| Gondia           |         0.03 |         0.38 |

(Data upto 31.12.2021) [Source: National CSR Data Portal]

The data for FY 2020-21 is subject to change as the levy of additional fees for the late filing has been relaxed till 15.03.2022.

*******