Question : CSR Fund for COVID Crisis

(a) whether there has been an increase in the expenditure from Public Sector and Private Sector companies from their Corporate Social Responsibility (CSR) towards the mitigation of the Covid-19 crisis in the country;

(b) if so, the details of the activities carried out from the CSR funds during the last 5 months;

(c) whether the Government has taken any special steps to incentivise the companies to increase the utilisation of the CSR funds for the Covid-19 crisis; and

(d) if so, the details thereof?

THE MINISTER OF STATE FOR FINANCE
AND CORPORATE AFFAIRS (SHRI ANURAG SINGH THAKUR)
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(a) & (b): As per the Companies Act, 2013 (‘Act’), companies are required to hold Annual General Meeting (AGM) within six months from the end of financial year. Thereafter, financial statements and board report containing disclosure about Corporate Social Responsibility (CSR), are to be filed in MCA21 within 30 days of the AGM. Thus, for the ongoing financial year (i.e. FY 2020-21) no such data is available.

(c) & (d): Ministry vide General Circular no.10/2020 dated 23.03.2020 clarified that CSR funds may be spent for various activities related to COVID-19 under item nos. (i) and (xii) of Schedule VII of the Act relating to promotion of health care, including preventive health care and sanitation, and disaster management. Further, Companies (CSR Policy) Rules, 2014 were amended to enable companies to undertake CSR activities in their normal course of business for undertaking research and development of new vaccine, drugs and medical devices related to COVID-19 for three financial years in collaboration with any of the institutes or organisations mentioned in item(ix) of the Schedule VII of the Act.
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