April 20, 2021

Centre bans supply of oxygen for industrial purposes to meet COVID-19 demand

COVID-19: The central government has banned the supply of oxygen for industrial purposes in the wake of a spike in COVID-19 infections and a subsequent rise in the demand for medical oxygen particularly in high-burden states such as Maharashtra, Madhya Pradesh, Gujarat, Delhi, and Uttar Pradesh. The decision will come into effect from April 22nd.

The decision was taken on the basis of the recommendation by the Empowered Group (EG-II) set up by the government to manage supplies of medical equipment and drugs including medical oxygen.

Nine industries, however, have been exempted from the order. These include companies manufacturing ampoules and vials, pharmaceuticals, petroleum refineries, steel plants, nuclear energy facilities, oxygen cylinder manufacturers, waste water treatment plants, food and water purification plants, and process industries that require uninterrupted operation of furnaces.

Citing an unprecedented surge in the new daily cases of COVID-19 across the country, the health ministry said that the requirement of oxygen for effective clinical treatment of patients has also witnessed a manifold hike. “It was considered prudent to restrict the industrial usage of oxygen to meet the rising demand for medical oxygen,” the ministry said.

In a communication to the chief secretaries of all states and union territories, home secretary Ajay Bhalla urged them to “take necessary measures to prohibit supply of oxygen for industrial purposes, except those exempted nine industries. It will help in augmenting supply for medical oxygen in the country and in saving precious lives”.

Read this article on the unique set of challenges faced by the rural elderly during COVID-19.


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.