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Government amended CSR Spending Norms

Published on September 23, 2019
Current context: The government has amended the corporate social responsibility (CSR) spending norms to allow the corporates to spend on research and development (R&D) activities.
Government amended CSR Spending Norms
  • The step has been taken to increase India’s spending on research and development (R&D) activities which is presently less than 1% of GDP for years.
  • The government has allowed spending the CSR on:
    • Research efforts in science, technology, medicine and engineering at major institutions and bodies.
    • Investments in publicly-funded incubators (funded by Central or State government or any agency of a Central or State public sector undertaking).
    • Autonomous bodies (established under the auspices of ICAR, ICMR, CSIR, DAE, DRDO, DST and Ministry of Electronics and Information Technology).
    • Contributions to publicly- funded universities, IITs, national laboratories.
  • The Companies Act requires firms with 1) net worth of Rs 500 crore 2) turnover of Rs 1,000 crore or net profit of Rs 5 crore or more to set aside 2% of their average net profit over the last 3 years towards ‘approved’ CSR activities.

Question: 

Q.1 Recently, the government has allowed corporate social responsibility (CSR) spending on _______ for corporate companies?
a. Waste Management Control
b. Research and Development activities
c. Water conservation
d. Afforestation
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