CSR in India

Donations by firms to PM CARES fund will qualify as CSR

Donations by firms to PM CARES fund will qualify as CSR

Donations by firms to PM CARES fund will qualify as CSR

Donations by firms to PM CARES fund will qualify as CSR – The ministry of corporate affairs (MCA) on Sunday said donations to the Prime Minister’s emergency fund found out to fight the Covid-19 pandemic will qualify as corporate social responsibility (CSR) spending that companies are mandated to form.

Finance and company affairs minister Nirmala Sitharaman tweeted that donations from CSR funds can now be made to the Prime Minister’s “Citizen Assistance and Relief in Emergency Situations” (PM CARES) fund. The minister also tweeted an MCA notification, which said the fund was found out primarily to affect any emergency or distress situation like the one posed by the Covid-19 pandemic. “It is clarified that any contribution made to the PM CARES fund shall qualify as CSR expenditure under the businesses Act 2013,” it said.

The ministry of corporate affairs (MCA) on Sunday said donations to the Prime Minister’s emergency fund found out to fight the Covid-19 pandemic will qualify as corporate social responsibility (CSR) spending that companies are mandated to form.

Finance and company affairs minister Nirmala Sitharaman tweeted that donations from CSR funds can now be made to the Prime Minister’s “Citizen Assistance and Relief in Emergency Situations” (PM CARES) fund. The minister also tweeted an MCA notification, which said the fund was found out primarily to affect any emergency or distress situation like the one posed by the Covid-19 pandemic. “It is clarified that any contribution made to the PM CARES fund shall qualify as CSR expenditure under the businesses Act 2013,” it said.

Firms spend about ₹15,000 crores on CSR annually, consistent with official estimates. the businesses Act stipulates that companies with a net worth of a minimum of ₹500 crores or revenue of ₹1,000 crore or net income of ₹5 crores should spend a minimum of 2% of their net income on CSR. Any lapse in meeting this obligation should be explained within the annual budget. MCA had last week clarified that firms could spend their CSR funds to fight the coronavirus disease, which has been notified as a disaster, including preventive care, and disaster management the activities that the CSR fund might be used include promoting healthcare, which incorporates relief, rehabilitation, and reconstruction activities. Firms are given the pliability to form judicial activism of the areas specified for CSR funds.

Corporate, government and philanthropic entities including the Airports Authority of India, Tata Trusts and Reliance Industries (RIL), also as business leaders like Vedanta’s Anil Agarwal, and Anand Mahindra have pledged support for various activities to fight the pandemic. RIL has begun production of face masks, while the Mahindra Group is venturing into producing ventilators. Helping the needy, especially the area people in areas where businesses have production facilities, also helps a number of their own workers who are a part of the area people.

Read more CSR News on India Frontline.

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