NEW DELHI: In a significant move that could boost the creation of health infrastructure for Covid care, the ministry of corporate affairs (MCA) today clarified that spending Corporate Social Responsibility – CSR funds for the establishment of medical oxygen generation and storage plants; manufacturing and supply of oxygen concentrators, ventilators, cylinders and other medical equipment for countering Covid are eligible CSR activities under company law.
This clarification is expected to come as a booster dose for several corporates who had recently voluntarily come forward to provide medical oxygen supplies in this hour of need and even resorted to imports of cryogenic tankers to help fulfil the unexpected oxygen demand in the country.
Commenting on development, Rusen Kumar, CEO, India CSR Network said, “The recent development may encourage corporates to manufacture oxygen concentrators, ventilators and cylinders in the country.”
The recent clarification is also expected to encourage corporates to manufacture of oxygen concentrators, ventilators and cylinders in the country, say corporate observers, he added.
“The decision of spending on COVID expenditure an eligible CSR activity is a welcome decision and need of hour. It will be very important to see how Healthcare sector convey their needs and companies reach out to them in the crisis. There is huge role of social sector and civil society organisations to bridge this gap and pivot to support this initiatives.”, Ketan Deshpande, Founder & CEO, FUEL (Friends Union For Energising Lives), a social organisation currently working for Covid relief in areas of make shift hospitals, medical supplies and scholarships to frontline workers.
“The CSR committees and Board Members of companies have a large role to play to streamline the process of documentation especially proposal writing / impact assessment so that healthcare sector can approach the Companies in user friendly manner for time bound approvals and valid needs. Unlike traditional programs Social Organizations working in Health care and Covid relief would also need unrestricted funding to innovate execution and capacities as project dynamics would be not variable. The second wave has also come after major CSR commitments which normally happen in March- April were complete so there could be challenges around it employee welfare and extended community welfare balancing both the expectations is also equally challenging but it heartening to see the way our corporate India has come forward proactively to support all of us.”, he added.
It will encourage corporates to come forward and supplement government efforts in fulfilling the rising hospitalisation needs given the second Covid-19 surge, they said.
MCA also clarified that companies, including government companies, may undertake the activities or projects or programmes using CSR funds, directly by themselves or in collaboration as a shared responsibility with other companies.
Earlier on April 22, MCA had clarified that spending of CSR funds for “setting up makeshift hospitals and temporary COVID care facilities” was an eligible CSR activity.
The government’s decision to include these activities under CSR comes at a time when the country’s medical system is struggling to cope with the rising number of COVID-19 cases.
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