MCA allows firms to use CSR funds for healthcare infra for COVID care

(Image: Reuters)

In a bid to further boost the creation of health infrastructure for COVID care, the Ministry of Corporate Affairs (MCA) on May 5 said that spending 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 as CSR activities under company law.

The recent development may encourage corporates to manufacture oxygen concentrators, ventilators and cylinders in the country, say corporate observers.

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.

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.