CII offers a 1% CSR bonus for jabs and urges to lift Covid limits

The CII urges for limits to be lifted and offers a 1% CSR bonus for jabs CSR bonus for jabs – Indian industry has urged the government to restrict social gatherings in pandemic-affected areas but not economic activities, and has offered an additional 1% contribution under corporate social responsibility (CSR) funds for a year as... Read More

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The CII urges for limits to be lifted and offers a 1% CSR bonus for jabs

CSR bonus for jabs – Indian industry has urged the government to restrict social gatherings in pandemic-affected areas but not economic activities, and has offered an additional 1% contribution under corporate social responsibility (CSR) funds for a year as a one-time aid to the 2022-23 Budget, specifically to fund vaccine booster doses.

According to TV Narendran, president of the Confederation of Indian Industry (CII), the Indian industry is eager to participate in the world’s most ambitious immunization program. “The CII recommends allocating 1% of mandatory CSR expenditures to immunization. We also propose that an additional 1% be added to the Budget’s CSR requirements for a 12-month period so that boosters can be made available to all age groups.”

Companies are willing to give an additional 1% to the national immunization mission under CSR guidelines, in addition to the compulsory 2%, and this can be included in the budget for a period of 12 months, he said in a statement.

The CII is an apex industry organization with over 9,000 members from both the private and public sectors, as well as an indirect membership.

CSR bonus for jabs by CII

Companies with a net worth of at least 500 crore, sales of at least 1,000 crore, or net profit of at least 5 crore must spend at least 2% of their average net profit produced in the three preceding financial years on welfare initiatives, according to the Companies Act. The top three contributors to CSR in 2019-20 were Reliance Industries, Tata Consultancy Services, and the state-run Oil and Natural Gas Corporation (ONGC).

“In reality, if corporations spend on vaccines for their employees, their families, and community members, that expense may be deducted from this additional CSR spend,” said Narendran, who is also the CEO and managing director of Tata Steel Ltd.

According to a government specialist in company matters who requested anonymity, the mandated CSR of 2% is the minimum requirement; companies can spend more if they desire. “Many commercial and public companies spend more than 2% of their revenue on CSR. Furthermore, the rule allows businesses to front-load their CSR spending in one year and offset it in the next two,” he noted.

Lift restrictions, Given that the occupancy rate of hospital beds owing to the Omicron form of Covid is well within reasonable levels, the CII president also asked states to ease limitations on economic activities. “While immunizations have helped to lessen the impact of Omicron on people’s life,” Narendran added, “the current conditions are conducive to entirely opening up the economy while keeping huge social gatherings to a minimal.”

On Sunday, 86.7 percent of Covid-19 hospital beds across 13 areas were unoccupied, according to a dashboard kept by Hindustan Times.

“With a rebound in demand, the economy is predicted to grow at a rate of 9.2% in 2021-22.” However, this pace must be maintained in the longer term to achieve a full recovery and quicker growth, as well as to protect workers and small businesses,” he stressed.

Market and merchant organizations in the national capital also demanded a rollback of limitations, according to HT on Sunday.

CII Request to Lift Covid Limits

The economic impact of the Covid-19 epidemic in March 2020, which was followed by a 68-day nationwide tight lockdown, was disastrous. In the first fiscal quarter of 2020, India’s GDP dropped by 24.4 percent. It sank into a chasm.

The Indian economy grew by 20.1 percent in the first quarter of this fiscal year (April-June 2021), followed by 8.4 percent in the second quarter (ending September 2021), indicating a solid recovery in commercial activity. The fresh wave brought on by the Omicron variety, on the other hand, threatens to decrease the rate of growth. The Reserve Bank of India (RBI) forecasted 9.5 percent GDP growth in 2021-22 in its economic outlook released on December 8, but warned that “new viral mutations” were one of the downside risks to the outlook. The NSO’s first advance forecasts announced on January 7, 2022, put India’s GDP growth in 2021-22 at 9.2 percent, lower than the RBI’s expectation of 9.5 percent a month earlier.

The CII urged states to explore imposing restrictions at the state level. State governments should not impede economic activity, even in micro containment zones, according to the industry group, and should allow all enterprises to operate under certain hygiene and safety norms. “No distinction should be made between necessary and non-essential goods and services.” To reduce crowds at specific times, all shops may be allowed to open without constraints on timing. Crowd control, on the other hand, is necessary for social separation, according to Narendran.

The CII believed that the upcoming Budget, which will be announced on February 1, would focus on measures to help the economy recover.

“Investments under the National Infrastructure Pipeline (NIP) and the Gati Shakti initiative must be expedited, and the Budget is likely to allow for this.” These activities will be hampered if economic activity is restricted.