New Delhi, 5 January 2020: As pharma companies enter into the final phases of vaccine trial for COVID 19, the Government of India has decided to allow corporates to participate in the vaccination programme through their Corporate Social Responsibility (CSR) arms.
According to a senior official at the Corporate Affairs ministry, COVID vaccination for supply chain workers and people in the local community would be considered as CSR activities for the companies. However, the vaccination for own employees of a company will be out of the CSR purview.
Thus, the COVID vaccination for own employee will not count as CSR activity.
The government’s clarification has come in the wake of industry queries as vaccine for COVID is expected to hit the market very soon.
Over the last 9-10 month, since the COVID pandemic began, corporates altogether have spent billions on COVID relief and rescue operations.
Government also allowed corporates to undertake COVID related research and development activities under their CSR programmes.
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.
In the notification issued on August 24, the MCA had said that Corporates can fund such research under their CSR activities for financial years from 2020-21, 2021-22 and 2022-23.
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 was set up by Prime Minister Narendra Modi in March to "deal with emergency or distress situations like the coronavirus pandemic".
Read here to understand what is included under CSR and what is not.
