COVID-19: Spending of CSR funds for COVID-19 eligible CSR Activity clarifies MCA



Quick Summary
The Ministry of Corporate Affairs (MCA) has confirmed that companies can use their Corporate Social Responsibility (CSR) funds to support COVID-19 relief efforts. This clarification comes as the government has declared the novel coronavirus outbreak a notified disaster. Funds can be allocated to activities such as promoting healthcare, preventive health, sanitation, and disaster management.

In view of the outbreak of the novel Corona Virus in India which has been declared a pandemic by the WHO. The  Government of India has decided to treat this as a notified disaster, the MCA further clarified that spending of CSR funds for COVID-19 is eligible CSR activity. 

General Circular No. 10/2020

No. 05/01/2019-CSR 
GOVERNMENT OF INDIA 
MINISTRY OF CORPORATE AFFAIRS 

5th floor, A Wing, Shastri Bhawan, 
Dr. R. P. Road, New Delhi- 110001 
23.03.2020 

To, 
All Stakeholders, 
Subject: Clarification on the spending of CSR funds for COVID-19. 

Ma'am/Sir, 

Keeping in view of the spread of novel Corona Virus (COVID-19) in India, its declaration as a pandemic by the World Health Organisation (WHO), and, decision of Government of India to treat this as a notified disaster, it is hereby clarified that spending of CSR funds for COVID-19 is eligible CSR activity. 

2. Funds may be spent for various activities related to COVID-19 under item nos. (i) and (xii) of Schedule VII relating to promotion of health care, including preventive health care and sanitation, and, disaster management. Further, as per General Circular No. 21/2014 dated 18.062014, items in Schedule VII are broad-based and may be interpreted liberally for this purpose. 

3. This issues with the approval of the competent authority. 

Yours faithfully, 
(Gyaneshwar Kumar Singh) 
Joint Secretary to Government of India 
Tel: 011-23383345 

Copy to: 

1. E-Governance for uploading on MCA Website 
2. Guard File 

FAQ :

Yes, the Ministry of Corporate Affairs (MCA) has clarified that spending CSR funds for COVID-19 is an eligible CSR activity.

The Government of India has decided to treat the COVID-19 outbreak as a notified disaster, making related spending eligible under CSR.

Funds can be spent on activities related to the promotion of health care, including preventive health care and sanitation, and disaster management.

Yes, spending can be allocated under item nos. (i) and (xii) of Schedule VII, which relate to health care and disaster management.

Yes, as per General Circular No. 21/2014, items in Schedule VII are broad-based and can be interpreted liberally for this purpose.




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