Corporates allowed to use CSR fund for COVID Vaccination awareness and outreach

New Delhi, 18 January 2021: As the government began world’s largest vaccination programme, the ministry of corporate affairs has allowed corporates to use their CSR funds for conducting awareness and outreach programmes on COVID vaccination.

In a public notification, Ministry of Corporate Affairs has clarified that "spending of CSR funds for carrying our awareness campaigns or public outreach campaigns on COVID 19 vaccination programme is and eligible CSR activity."

The notification singed by Shobhit Srivastava, who is Ministry of Corporate Affairs’ Deputy Director of CSR Cell, added that "the activity will fall under Schedule VII of the Companies Act 2013 relating to promotion of health care, including preventive health care and sanitisation, promoting education and disaster management respectively."

Govt notification clarifies doubts

The clarification form the MCA came after doubts were raised by the corporates on validity of COVID related programmes as CSR activity.

The government has also called for participation of private players and corporates in making the COVID vaccination programme a success in India.

The Ministry of Corporate Affairs has been issuing CSR related directives and clarifications on different COVID related activities since March 2020.

A few days back the ministry had also allowed COVID vaccination programme for community and supply chain workers as CSR activity.

Earlier, the Ministry of Corporate Affairs (MCA) had permitted companies to spend their CSR fund on research and development for finding vaccines, medicines and medical equipment meant to fight with Covid-19 pandemic. The ministry made it possible for the companies through an amendment to the Companies (Corporate Social Responsibility) Rules, 2014. The companies are allowed to claim CSR benefits for such activities until the 2022-2023 financial year.

Government has also set up a special fund to drive relief operation for COVID like crisis.  PM-CARES or the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund were set up by Prime Minister Narendra Modi in March to "deal with emergency or distress situations like the Coronavirus pandemic".