Clarification on spending of CSR funds for setting up makeshift hospitals and temporary COVID Care facilities

Last updated: 23 April 2021

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The Ministry of Corporate Affairs has clarified that spending Corporate Social Responsibility (CSR) funds on setting up makeshift hospitals and temporary COVID Care facilities is an eligible activity. This falls under the promotion of healthcare and disaster management as outlined in the Companies Act, 2013. Companies can undertake these initiatives in consultation with State Governments, ensuring compliance with CSR rules.

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.

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

Copy to:

1. E Governance for uploading on MCA website

2. Guard File.

FAQ :

Yes, spending CSR funds for COVID-19 is an eligible CSR activity, as previously clarified by the Ministry of Corporate Affairs.

Yes, spending CSR funds for setting up makeshift hospitals is an eligible CSR activity under item nos. (i) and (xii) of Schedule VII of the Companies Act, 2013.

Yes, spending CSR funds for temporary COVID Care facilities is an eligible CSR activity under item nos. (i) and (xii) of Schedule VII of the Companies Act, 2013.

These activities are covered under item nos. (i) and (xii) of Schedule VII of the Companies Act, 2013, relating to the promotion of healthcare and disaster management.

Yes, companies may undertake these activities in consultation with State Governments.