In the fight against coronavirus crises, the Tata Trusts has committed ₹500 crore to provide protective equipment for medical personnel on the frontline, testing kits, modular treatment facilities and training for health workers among other provisions .
Chairman Ratan Tata said, “Urgent emergency resources need to be deployed to cope with the needs of fighting the Covid-19 crisis. The COVID 19 crisis is one of the toughest challenges we will face as a race. The Tata Trusts and the Tata group companies have in the past risen to the needs of the nation. At this moment, the need of the hour is greater than any other time.”
The government recently allowed companies to spend their corporate social responsibility (CSR) funds to fight the Covid-19 pandemic. The move is expected to benefit local communities, where businesses have operations and complement the state’s efforts to combat the crisis that has disrupted economic activity and could impact livelihoods.
Indian companies spend around ₹15,000 crore a year on charity as mandated by law. The Companies Act requires firms with a net worth of at least ₹500 crore or revenue of ₹1,000 crore or net profit of ₹5 crore to spend at least 2% of their net profit on CSR. If they fail to do so, it should be explained in the annual financial statement.
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An order by the ministry of corporate affairs said CSR funds may be spent on various activities related to the Covid-19 disease in ways such as promoting healthcare, including preventive care. CSR funds could also be used to tackle disaster management.