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ARTICLE · 24 FEBRUARY 2021

An Analysis Of The Recent Changes To India's CSR Framework

The Government has, through three notifications, introduced amendments (collectively, the "Amendments") to the provisions relating to corporate social responsibility ("CSR") under the...

IndiaCorporate/Commercial Law

WHAT HAS CHANGED?

Corporates
CSR Governance
  • CFO certification on CSR fund disbursal and utilization.
  • Frame a deeper, well defined and specific CSR policy.
  • Broader roles and responsibilities of CSR Committees, including formulating an annual action plan.
CSR Spends
  • Consolidates erstwhile clarifications on excluded activities, while making exceptions for Covid-19 related R&D.
  • Permission to acquire/create a capital asset, subject to such assets being owned by the NGO, project beneficiaries or a public authority.
  • Administrative overheads continue to be subject to a cap of 5% of CSR spends, but it now excludes costs incurred directly on the project design, implementation, monitoring and evaluation.

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