New Delhi, March 23: The Narendra Modi government on Monday announced that corporate spending on checking coronavirus would be considered as part of the Corporate Social Responsibility (CSR). In a circular issued by the Ministry of Corporate Affairs, the government said that corporate spending for various activities related to COVID-19 including the promotion of healthcare, preventive healthcare, sanitation, disaster management would qualify for treatment as CSR. Coronavirus Outbreak in India: Punjab Government Imposes Curfew in State to Prevent Spread of COVID-19.

The interpretation of the activities qualifying as CSR for COVID-19 will also be interpreted liberally to prevent red tape from squeezing fund flows. The corporate social responsibility rules make it mandatory for large Indian firms to set aside at least 2 per cent of their average net profit for socially responsible expenditures. The norms are applicable to firms with at least Rs 5 crore net profit or Rs 1,000 crore turnover or Rs 500 crore net worth. The list of activities included under CSR is decided by the government. Coronavirus Outbreak in India: Strictly Enforce Lockdown, Take Legal Action Against Violators, Centre Tells States.

Finance Minister Nirmala Sitharaman took to Twitter, to announce the government’s decision. Along with her tweet, she shared the copy of the circular. She said, “In view of the spread of novel #CoronaVirus in India, its declaration as a pandemic by the WHO, and decision of Government of India to treat this as notified disaster, it is hereby clarified that spending of CSR funds for COVID-19 is eligible CSR activity”

Nirmala Sitharaman's Tweet:

With the approval to include COVID-19, which has been declared a global pandemic by the World Health Organisation (WHO) and a notified disaster by the Indian government, into CSR spent, huge fund flow is expected to come into the healthcare segment. The total corporate social responsibility (CSR) spending by the top 500 companies in the country since the applicability of mandatory CSR in 2014 is likely to cross Rs 60,000 crore by the end of the month as per industry reports.

India is currently at stage 2 of the coronavirus outbreak, as community transmission has not taken place yet. In India, till now, 415 positive cases of COVID-19 has been reported. Meanwhile, seven people also lost their lives – two in Maharashtra, one each in Punjab, Gujarat, Delhi, Karnataka and Bihar.

(With inputs From IANS)

(The above story first appeared on LatestLY on Mar 23, 2020 03:41 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).