MCA Clarification on the spending of CSR funds for “Har Ghar Tiranga” campaign
MCA Clarification on the Spending of CSR funds for “Har Ghar Tiranga” Campaign
The Ministry of Corporate Affairs (MCA) vide General Circular No. 08/2022 dated July 26, 2022, has clarified that spending of funds towards the ‘Har Ghar Tiranga’ campaign would be considered an eligible CSR activity under the Company law.
Har Ghar Tiranga’ Campaign
Har Ghar Tiranga’ is a campaign under the aegis of the Azadi Ka Amrit Mahotsav and is aimed to invoke a feeling of patriotism in the hearts of people. This campaign is intended to promote awareness about the Indian nation.
MCA Clarification on the spending of CSR funds for the “Har Ghar Tiranga” campaign
The government has clarified that spending of CSR funds for activities with respect to mass scale production and supply of the National Flag, outreach and amplification efforts, and other related activities, are eligible CSR activities under item no. (ii) Of Schedule VII of the Companies Act, 2013 pertaining to the promotion of education relating to culture.
Corporate Social Responsibility as per Companies Act 2013
As per the Companies (CSR Policy) Amendment Rules, 2021, Corporate Social Responsibility (CSR) is defined as the activities undertaken by a Company in pursuance of its statutory obligation laid down in section 135 of the Companies Act following the provisions contained in the Companies (Corporate Social Responsibility Policy) Rules, 2014.
Activities Specified under Schedule VII
The Activities Specified under Schedule VII include the followings:
| I | Eradicating hunger, poverty, and malnutrition, [‘‘promoting health care including preventive health care’’] and sanitation [including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation] and making available safe drinking water |
| II | Promoting education, including special education and employment enhancing vocation skills, especially among children, women, elderly, and the differently abled and livelihood enhancement projects. |
| III | Promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, daycare centers, and such other facilities for senior citizens, and measures for reducing inequalities faced by socially and economically backward groups. |
| IV | Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources, and maintaining the quality of soil, air, and water [including contribution to the Clean Ganga Fund set up by the Central Government for rejuvenation of river Ganga]. |
| V | Protection of national heritage, art, and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional art and handicrafts; |
| VI | Measures for the benefit of armed forces veterans, war widows, and their dependents, [ Central Armed Police Forces (CAPF) and Central Para Military Forces (CPMF) veterans, and their dependents including widows]; |
| VII | Training to promote rural sports, nationally recognized sports, Paralympic sports, and Olympic sport |
| VIII | Contribution to the prime minister’s national relief fund or Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) or any other fund set up by the central govt. for socio-economic development and relief and welfare of the schedule caste, tribes, other backward classes, minorities, and women; |
| IX | Contribution to incubators or research and development projects in the field of science, technology, engineering and medicine, funded by the Central Government or State Government or Public Sector Undertaking or any agency of the Central Government or State Government; and (b) Contributions to public-funded Universities; Indian Institute of Technology (IITs); National Laboratories and autonomous bodies established under Department of Atomic Energy (DAE); Department of Biotechnology (DBT); Department of Science and Technology (DST); Department of Pharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH); Ministry of Electronics and Information Technology and other bodies, namely Defense Research and Development Organisation (DRDO); Indian Council of Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and Council of Scientific and Industrial Research (CSIR), engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs).] |
| X | Rural development project |
| XI | Slum area development |
| XI | Disaster management, including relief, rehabilitation, and reconstruction activities |
The official notification pertaining to the MCA Clarification on the spending of CSR funds for the “Har Ghar Tiranga” campaign is attached here for reference:
Circular_20220726