Companies spent Rs 21,231 crore on CSR in 2019-20, 19% more than 2018-19
Ministry of Corporate Affairs has allowed CSR funds to be spent for various activities related to combating Covid-19
THC Bureau | July 19, 2021 9:41 pm
Corporate houses spent Rs 21,231 crore on corporate social responsibility (CSR) in 2019-20. This was almost 19 per cent higher than the CSR spending in the previous fiscal. This was stated by Minister of State for Corporate Affairs Rao Inderjit Singh in a written reply to a question in the Lok Sabha today.
The Ministry of Corporate Affairs (MCA) on March 23, 2020, had clarified that CSR funds may be spent by companies for various activities related to combating Covid-19, the Minister said. On April 22 this year, the MCA allowed spending of CSR funds by companies for setting up makeshift hospitals and temporary Covid care facilities and ‘creating health infrastructure for Covid care’, ‘establishment of medical oxygen generation and storage plants’ ‘manufacturing and supply of oxygen concentrators, ventilators, cylinders and other medical equipment for countering Covid-19.
Section 135 of the Companies Act, 2013, mandates every company having net worth of Rs 500 crore or more, turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more during the immediately preceding financial year to undertake CSR activities.