The Ministry of Corporate Affairs in a notification dated 11th October 2019 has substituted the entry (ix) of Schedule VII of the Companies Act, 2013 which deals with activities which may be included by companies in their Corporate Social Responsibility Policies.
Item (ix) deals with “Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government.”
With this recent amendment, clause ix has been substituted by expanding and clarifying its scope by specifically mentioning that:
“Contribution to incubators funded by Central Government or State Government or any agency or Public Sector Undertaking of Central Government or State Government, and contributions to public funded Universities, Indian Institute of Technology (IITs), National Laboratories and Autonomous Bodies (established under the auspices of Indian Council of Agricultural Research (ICAR), Indian Council of Medical Research (ICMR), Council of Scientific and Industrial Research (CSIR), Department of Atomic Energy (DAE), Defence Research and Development Organisation (DRDO), Department of Science and Technology (DST), Ministry of Electronics and Information Technology) engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs)” can also be included by companies in their CSR policy activities.
Prior to this amendment, the scope and ambit with respect to incubators was not so expansive and the institutions / incubators in which CSR spending could be made was not clear too.
Source : Ministry of Corporate Affairs