April 29, 2021

Karnataka orders garment industry to close; will impact eight lakh workers

Livelihoods: The Karnataka government has ordered the closure of the garment industry as part of its 14-day lockdown, which started on April 27th 2021. This is expected to impact close to eight lakh employees that the industry supports. Of this, about four lakh work in Bengaluru.

Employees in this sector work in garments, dyeing, printing, and textiles, with most of them being women. Many of the workers, who had been severely affected by the lockdown last year, are still to receive salaries for that period. With the current restrictions and closure, this is non-payment of dues is expected to continue.

The Karnataka Employers’ Association (KEA) has urged the chief minister to allow the garment industry to operate with 50 percent attendance so that they can fulfil the orders that they have received from Europe. According to KEA president, B C Prabhakar, these orders are large and carry strict timelines. “If there is a delay, it will result in huge penalty, losses, and also employment loss. Foreign buyers may divert orders to countries such as Bangladesh,” he said.

He also added that the suppliers source raw materials from cotton growers, who will be affected. “Total closure can lead to people returning to their hometowns and they may not return for some time. This will put industry in further trouble,” he said in a letter.

Read this article to understand the role of civil society in times of crisis.


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.