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MCA Clarifies Setting-up Makeshift Hospitals and Temporary COVID Care Facilities as CSR Activities

mca-clarifies-setting-up-makeshift-hospitals-and-temporary-covid-care-facilities-as-csr-activities

The Ministry of Corporate Affairs (MCA) has vide General Circular No. 05/2021 dated 22.04.2021 clarified that spending of CSR funds for ‘setting up makeshift hospitals and temporary COVID Care facilities’ is an eligible CSR activity under item nos. (i) and (xii) of Schedule VII of the Companies Act, 2013 relating to the promotion of health care, including preventive health care, and disaster management respectively.


Earlier, vide General Circular No. 10/2020 dated 23.03.2020 MCA clarified that spending of CSR funds for COVID-19 is an eligible CSR activity. The Circular states that funds may be spent on various activities related to COVID-19 under item nos. (i) and (xii) of Schedule VII relating to the promotion of health care, including preventive health care and sanitation, and disaster management. Further, as per General Circular No. 21/2014 dated 18.06.2014, items in Schedule VII are broad-based and may be interpreted liberally for this purpose.



The Circular further states that the companies may undertake the aforesaid activities of setting up makeshift hospitals and temporary COVID Care facilities in consultation with State Governments subject to fulfillment of Companies (CSR Policy) Rules, 2014 and the circulars related to CSR issued by this Ministry from time to time.


Read the full text of General Circular 5/2021 dated 22.04.2021 on CSR Expenditure


General Circular No. 05/2021


E-file no. CSR-10/9/2020-CSR-MCA

Government of India

Ministry of Corporate Affairs


5th Floor, ‘A’ Wing, Shastri Bhawan, 

Dr. R. P. Marg, New Delhi - 110 001

Date: 22nd April 2021


To,


All Stakeholders.


Subject: - Clarification on spending of CSR funds for setting up makeshift hospitals and temporary COVID Care facilities - reg. 


Ma’am/Sir(s),


In continuation to this Ministry's General Circular No. 10/2020 dated 23.03.2020 wherein it was clarified that spending of CSR funds for COVID-19 is an eligible CSR activity, it is further clarified that spending of CSR funds for ‘setting up makeshift hospitals and temporary COVID Care facilities ’ is an eligible CSR activity under item nos. (i) and (xii) of Schedule VII of the Companies Act, 2013 relating to promotion of health care, including preventive health care, and, disaster management respectively.


2. The companies may undertake the aforesaid activities in consultation with State Governments subject to fulfillment of Companies (CSR Policy) Rules, 2014 and the circulars related to CSR issued by this Ministry from time to time.


3. This issues with the approval of competent authority.


Yours faithfully,

(Shobhit Srivastava) 

Deputy Director (CSR Cell)

Tel: 011-23070216



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