Except sports training, no activity on foreign land considered as CSR, says Minister

New Delhi, 30 November 2021: Except for training of Indian sports personnel, no other activity undertaken by any company outside India is considered under Corporate Social Responsibility (CSR) activities, confirmed the government.

Responding to a question asked by Manickam Tagore, a parliamentarian from Tamil Nadu, Minister of state in Ministry of Corporate Affairs Rao Inderjit Singh said, “As per Rule 2(1)(d) of the Companies (CSR Policy) Rules, 2014, any activity undertaken by the company outside India except for training of Indian sports personnel representing any State or Union territory at national level or India at international level is not permitted as an eligible CSR activity.”

The minister of state has categorically cleared that training of sports persons that too for those who are representing state or country is considered under CSR activities.
Tagore, a Member of Parliament from Indian National Congress asked, “Whether it is also a fact that the activities carried out by firms outside India will also be permitted as a CSR project?”

He had asked another question: whether it is a fact that the Government is considering linking Corporate Social Responsibility (CSR) expenditure with National priorities?
Responding to this question, the minister also confirmed that the existing CSR framework is already inclined towards national priority.

He said that the Government provides the broad framework for Corporate Social Responsibility (CSR) through Section 135 of the Companies Act, 2013 (‘Act’), Schedule VII of the Act and Companies (CSR Policy) Rules, 2014. Schedule VII indicates the activities that can be undertaken by the companies as eligible CSR activities.

“These activities are broadly aligned with national priorities and related to inclusive and sustainable development such as health, education, poverty eradication, hunger, women empowerment, welfare of armed forces veterans, environment, sports, rural development, slum area development, welfare of weaker sections, disaster management etc. Further, the Ministry vide General Circular no. 14/2021 dated 25.08.2021 at Question No. 3.13, inter alia, clarified that items mentioned in Schedule VII are broad based and must be interpreted liberally to capture the essence of the subject enumerated,” the minister of state confirmed.

It should be noted that Neeraj Chopra who bagged the gold medal in the Olympics held in Tokyo recently is supported by JSW. The same organization supported Bajarang Punia too who also brought a medal for the country. There are many organisations in India which support sportsmen in their training that includes sending them to other countries for better skill development.