March 18, 2021

16 states cut forest budget, West Bengal reports highest decline at 52 percent

Environment: Sixteen states in the country have reduced the annual budget of their respective forest departments in the current financial year, according to Minister for Environment, Forest and Climate Change (MoEF&CC) Prakash Javadekar.

West Bengal reported the highest percentage decline in its budgetary allocation at 52 percent from INR 289 crore in 2019-20 to INR 137 crore in 2020-21, followed by Uttar Pradesh (44 percent), Andhra Pradesh (40 percent), Tamil Nadu (38 percent), and Bihar (30 percent).

However, states such as Telangana, Madhya Pradesh, Himachal Pradesh, Chhattisgarh, Goa, Haryana, Kerala, Meghalaya, Tripura, Rajasthan, and Punjab reported an increase in their budgetary allocation towards the forest departments.

While data on most of the union territories is not available, Delhi showed a decrease in its forest budget from INR 71 crore in 2019-20 to INR 48 crore in 2020-21.

In addition to states cutting their forest department budget, the total allocation for the five autonomous institutes under MoEF&CC has been reduced to INR 305.5 crore in the Union Budget 2021-2022 by the Centre. The allocation is lower than the allocation of INR 340 crore as well as actual expenditure of INR 326.5 crore in 2019-20.

The five bodies included are GB Pant Himalayan Institute of Environment and Development, Indian Council of Forestry Research and Education, Indian Institute of Forest Management, Indian Plywood Industries Research and Training Institute, and Wildlife Institute of India.

Read this article on why a government campaign in New Delhi to plant more trees has sparked a negative response from Adivasi communities.


May 20, 2021

Home Ministry extends validity period of FCRA registration certificates

Fundraising & Communications: The Ministry of Home Affairs (MHA) has issued a circular extending the validity of FCRA registration certificates to September 30th, 2021. This applies to all FCRA licences that have expired or will expire between September 29th, 2020 and May 31st, 2021. The decision to extend the deadline has been driven by the exigencies arising from the COVID-19 situation.

FCRA refers to the Foreign Contribution (Regulation) Act 2010, which permits charitable organisations based in India to raise funds from foreign sources.

The order also clarified that nonprofits that have already opened an account and have the requisite permission to receive foreign aid, can henceforth receive it only in these newly-opened accounts.

The FCRA law was amended in September 2020 to include a clause that mandated that all nonprofits receiving foreign aid must necessarily open an account in State Bank of India’s New Delhi Main Branch. The government had initially set the deadline for this account opening as March 31st, 2021; it later extended it to June 30th, 2021 after several nonprofits argued in court that there had been delays because necessary approvals from MHA had not been received.

Several organisations have not been able to receive foreign funds during the crisis caused by the second wave, and this has impacted their COVID-19 relief efforts. Relaxing the foreign funding rules could significantly help organisations ramp up their operations to help individuals, supply critical healthcare equipment, and respond to communities in rural areas.

Read this article to know how amending the FCRA can have unforeseen implications.


May 20, 2021

Corporate spending on oxygen support and medical equipment now counts as CSR

Philanthropy & CSR: The Ministry of Corporate Affairs (MCA) has issued a circular that allows corporate spending on health infrastructure for COVID-19 care to qualify as corporate social responsibility (CSR) expenditure.

This includes setting up medical oxygen generation and storage plants, manufacturing and supply of oxygen concentrators, ventilators, cylinders, and other medical equipment to counter COVID-19.  

The announcement comes at a time when all efforts are being directed towards expediting efforts to support the country’s healthcare infrastructure.

According to the circular, companies can now undertake projects and activities in collaboration with other companies using CSR funds. Additionally, they can contribute to specified research and development projects, as well as publicly funded universities and certain organisations that conduct research in science, technology, engineering, and medicine.

The government had earlier clarified that setting up makeshift hospitals and temporary COVID-19 care facilities would also be considered a CSR activity. Rajesh Verma, the Corporate Affairs Secretary, has requested businesses to consider converting vacant office buildings into COVID-19 facilities to cater to the rapidly increasing caseload.

Read this article to understand why media attention on COVID-19 deaths due to lack of oxygen in big cities has skewed donor priorities.