April 14, 2021

COVID-19 restrictions: Business leaders ask governments to protect livelihoods

Livelihoods: In the wake of states imposing restrictions such as mini-lockdowns and weekend curfews to curb the surge in COVID-19 infections, the Confederation of Indian Industry (CII) has appealed to the respective governments to ensure protection of livelihoods.

The appeal was made after CII, a non-governmental trade association and advocacy group, conducted a poll on the impact of lockdown on the industry among CEOs, from both the manufacturing and services sectors.

Of the 710 CEOs who took part in the poll, 75 percent said that partial lockdown measures could impact the movement of labour as well as goods. This, they said, would significantly affect industrial production.

Acknowledging the importance of stringent enforcement measures to promote adherence to health and safety protocols, T V Narendran, president-designate, CII, requested that any measures restricting social gatherings should not be extended to the regular functioning of industry and commerce. “Protecting livelihoods along with lives is essential and industry is keen to work with the government on implementing strict health and safety protocols,” he said.

Several CEOs also expressed their desire to work with the government for mass vaccinations of their eligible workforce. About 31 percent of the industry leaders said that they would accommodate their labour force in the factory in case of movement restrictions due to night curfew. More than 60 percent of the CEOs suggested that the government should allow movement of workers in all shifts during night curfews and also free movement of goods along with the required personnel to facilitate the movement of goods. This should be allowed with all workers and industry staff, strictly following health and safety protocols, said the industry leaders.

Read this article on how labour rights have worsened post-lockdown.


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.