Moneycontrol PRO
Open App
you are here: HomeNewsIndia

Govt amends Companies Act, donations to PM CARES to be counted as CSR activity

PM CARES was set up as a public charitable trust on March 28 by Prime Minister Narendra Modi.

May 27, 2020 / 08:15 PM IST

The central government has amended regulations to allow the Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund to receive corporate social responsibility (CSR) funding from companies.

The Ministry of Corporate Affairs (MCA) on May 26 notified an amendment to the Companies Act, 2013, whereby it added contributions to the PM CARES Fund under the list of activities that may be included by companies in their CSR policies.

This means donations by corporates to the PM CARES Fund will now be eligible to be counted under their CSR activities. The notification says the amendment to have come into effect retrospectively from March 28 onward.

PM CARES was set up as a public charitable trust on March 28 by Prime Minister Narendra Modi.  The idea was to have a "dedicated national fund with the primary objective of dealing with any kind of emergency or distress situation, like posed by the COVID-19 pandemic, and to provide relief to the affected".


COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more

Track this blog for LIVE updates on the COVID-19 pandemic 

Donations to the fund also qualify for benefits and exemptions under Section 80G of the Income Tax (I-T) Act as well as the Foreign Contribution (Regulation) Act, 2010 (FCRA).

The first and only announcement to date, pertaining to expenditure from the PM CARES Fund, was made by the Prime Minister's Office on May 13. Rs 3,100 crore from the fund had been allocated for the country's fight against COVID-19, of which approximately Rs 2,000 crore was earmarked for the purchase of ventilators, Rs 1,000 crore for the care of migrant labourers and Rs 100 crore was to be directed to support vaccine development.
Moneycontrol News
first published: May 27, 2020 03:27 pm
ISO 27001 - BSI Assurance Mark