Current Affairs

Government amended CSR Spending Norms

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
Government amended CSR Spending Norms Government amended CSR Spending Norms Reviewed by Neha Verma on September 23, 2019 Rating: 5

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