MCA clarifies that CSR funds used for setting up makeshift hospitals & temporary COVID care facilities is an eligible CSR activity



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The Ministry of Corporate Affairs (MCA) has issued a clarification confirming that companies can use Corporate Social Responsibility (CSR) funds to establish makeshift hospitals and temporary COVID-19 care facilities. This activity is considered eligible under the Companies Act, 2013, relating to healthcare promotion and disaster management. Companies undertaking these initiatives should consult with state governments and adhere to relevant CSR rules and guidelines.

The Ministry of Corporate Affairs has 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. Read the official announcement below:

General Circular No. 05/2021

E-file no. CSR-10/9/2020-CSR-MCA
Government of India
Ministry of Corporate Affairs

5th Floor, 'A' Wing, Shastri Bhawan,
Dr. R. P. Marg, New Delhi - 110 001
Date: 22nd April 2021

To, All Stakeholders.

CSR Funds for COVID Care Facilities: MCA Clarification

Subject: Clarification on spending of CSR funds for setting up makeshift hospitals and temporary COVID Care facilities - reg.

Ma'am/ Sir(s), In continuation to this Ministry's General Circular No. 10/2020 dated 23.03.2020 wherein it was clarified that spending of CSR funds for COVID-19 is an eligible CSR activity, it is further 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 promotion of health care, including preventive health care, and, disaster management respectively.

2. The companies may undertake the aforesaid activities in consultation with State Governments subject to fulfillment of Companies (CSR Policy) Rules, 2014 and the circulars related to CSR issued by this Ministry from time to time.

3. This issues with the approval of competent authority.

Yours faithfully,
(Shobhit Srivastava)
Deputy Director (CSR Cell)
Tel: 011-23070216

FAQ :

Yes, the Ministry of Corporate Affairs has clarified that spending CSR funds for setting up makeshift hospitals and temporary COVID Care facilities is an eligible CSR activity.

These activities are eligible under item nos. (i) and (xii) of Schedule VII of the Companies Act, 2013, which relate to the promotion of health care and disaster management, respectively.

Yes, in General Circular No. 10/2020 dated 23.03.2020, the MCA had previously clarified that spending CSR funds for COVID-19 related activities is eligible.

Companies may undertake these activities in consultation with State Governments and must ensure they fulfill the requirements of the Companies (CSR Policy) Rules, 2014, and other relevant CSR circulars.




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