Spending CSR funds for awareness/ public outreach on COVID-19 is vaild CSR Activity

In India as per section 135 of the Companies Act, 2013, every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit (as calculated under Section 198 of the Act with other adjustments as referred in Rule 2(h) of CSR Rules.) of rupees five crore or more during the immediately preceding financial year shall constitute CSR Committee and requires to be spent 2% of Average net profit on CSR Activities as prescribed under the Act.

Considering the current scenario due to outbreak of second wave of COVID-19 pandemic, to encourage the Companies to help the Society to overcome the impact of COVID-19 by spending CSR funds on healthcare, awareness and preventive measures on COVID-19 Vaccination.

Ministry of Corporate Affairs vide General Circular No. 01/2021 dated 13.01.2021 clarified that spending of CSR funds for carrying out awareness programmes / campaigns or Public outreach programme on COVID-19 vaccination is an eligible CSR activity under item no. (i), (ii) & (xii) of Schedule VII of the Companies Act, 2013 relating to Promotion of Health care, including preventive health care and santization, promoting education and disaster management respectively.

The Companies may take aforesaid activities subject to fulfillment of Companies (CSR Policy) Rules, 2014 and the circulars related to CSR, issued by the Ministry from time to time.