Coronavirus / Tata Trusts commits ₹500 crore to fight coronavirus

Livemint : Mar 28, 2020, 05:50 PM
Mumbai: Tata Trusts on Saturday has committed ₹500 crore for waging the "war against virus".

The funds would be used for personal protective equipment for the medical personnel on the frontlines, respiratory systems for treating increasing cases, testing kits to increase per capita testing, setting up modular treatment facilities for infected patients, and knowledge management and training of health workers plus the general public.

Tata Trusts Chairman Ratan Tata said, "Urgent emergency resources need to be deployed to cope with the needs of fighting the Covid-19 crisis."

"The COVID 19 crisis is one of the toughest challenges we will face as a race. The Tata Trusts and the Tata group companies have in the past risen to the needs of the nation. At this moment, the need of the hour is greater than any other time," Tata tweeted.

He said that Tata Trusts, Tata Sons and Tata Group companies are joined by committed local and global partners and the government to fight this crisis on a united public health collaboration platform which will strive to reach sections that are underprivileged and deprived.

"We are deeply grateful and have immense respect for every person of member organisations who have risked their lives and safety to fight this pandemic," Tata said in a statement.

The government recently allowed companies to spend their corporate social responsibility (CSR) funds to fight the Covid-19 pandemic, a notified disaster.

The move is expected to benefit local communities, where businesses have operations and complement the state’s efforts to combat the crisis that has disrupted economic activity and could impact livelihoods.

Indian companies spend around ₹15,000 crore a year on charity as mandated by law. The Companies Act requires firms with a net worth of at least ₹500 crore or revenue of ₹1,000 crore or net profit of ₹5 crore to spend at least 2% of their net profit on CSR. If they fail to do so, it should be explained in the annual financial statement.

An order by the ministry of corporate affairs said CSR funds may be spent on various activities related to the Covid-19 disease in ways such as promoting healthcare, including preventive care. CSR funds could also be used to tackle disaster management, which includes relief, rehabilitation and reconstruction activities.