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CS Professional · CSR and Social Governance · Local Self Governance

Kaveri Power Ltd's CSR committee proposes contributing to a gram sabha-approved village development plan. The plan includes a primary health sub-centre (a Schedule VII healthcare activity) and a purely political rally ground for a party. Which treatment is correct?

Only the health sub-centre qualifies as CSR, because it falls under Schedule VII healthcare. Gram sabha approval does not override eligibility, and contributions for political party purposes are excluded from CSR. The company should therefore fund the sub-centre and decline the rally ground.

  1. AFund both, since the gram sabha approved the plan
  2. BFund neither, because gram sabha projects cannot be CSR
  3. CFund the rally ground only, as it benefits the community
  4. DFund only the health sub-centre as CSR; contributions for political party purposes are excluded from CSRCorrect

Explanation

Approval by a gram sabha does not make an item eligible. CSR must fall within Schedule VII, and contribution to political parties is expressly excluded from CSR activities. The health sub-centre qualifies as healthcare. The first option wrongly treats approval as sufficient.

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