CSR projects: Centre allows firms to team up with unrelated entities

NEW DELHI, Corporates’ have been given more flexibility in their CSR spending with the Government allowing them to collaborate with unrelated entities for this purpose.

The Corporate Affairs Ministry’s move to permit collaborative CSR efforts between unrelated corporate entities will help enhance the scale of CSR projects that could be undertaken by companies. It will help companies raise more funds to carry out specific projects without budgetary constraints, say corporate observers.

The latest move would also enable better direct monitoring of the actual CSR spend for corporates, they added. Prior to the latest rule change, companies could undertake CSR only through ‘direct relationships’ and unrelated entities were not allowed to collaborate.

“Companies would now be able to undertake CSR activities with other entities, whether forming part of the same group or otherwise, through a separate legal entity. Business Line .