The Ministry of Corporate Affairs has issued a circular authorising company to spend their CSR funds for activities related to the 'Har Ghar Tiranga' campaign.
As per a report by news agency PTI, the campaign, a part of ‘Azadi Ka Amrit Mahotsav’ is being organised by the government to encourage people to bring home the national flag and hoist it to commemorate India's 75th year of Independence.
In a circular released on Tuesday, the Corporate Affairs Ministry said the “Har Ghar Tiranga" campaign is intended to invoke the feeling of patriotism in the hearts of people and to promote awareness about the Indian national flag.
"... Spending of CSR funds for the activities related to this campaign such as mass scale production and supply of the national flag, outreach and amplification efforts and other related activities are eligible CSR activities," the circular further noted.
As per the report, under the Companies Act, 2013, certain class of profitable companies are required to shell out at least 2% of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities.
Under the provisions of Schedule VII of the Companies Act pertaining to promotion of education relating to culture the activities are eligible for CSR funds.
Schedule VII pertains to CSR activities.
The circular further stated that companies can engage in these activities as long as they fulfil the Companies (CSR Policy) Rules, 2014 and related circulars/clarifications issued by the ministry.