The State government, which is trying to raise money for COVID-19 relief efforts through corporate and individual contributions, seems to be experiencing some trouble in attracting funds to the Chief Minister’s Relief Fund (CMRF).
The announcement from the Ministry of Corporate Affairs (MCA) that any contribution to the newly formed PM CARES fund would be treated as Corporate Social Responsibility (CSR) contribution may have deterred corporates from donating to the CMRF, which brings them no such relief, a top State government official told The Hindu.
“The COVID relief fund (in CMRF) does not qualify under CSR contributions as per the MCA guidelines. This may be a setback,” the official acknowledged, adding that it was “illogical” to have one fund qualify but not the other.
Three major Bengaluru-based PSUs together have contributed about ₹54 crore to PM CARES. Several companies based in Karnataka have made their CSR contribution as well as a general contribution to PM CARES.
Despite the hiccup, government sources said the contributions to CMRF from various sources had crossed ₹150 crore by Saturday since March 25, when Chief Minister B.S. Yediyurappa appealed to corporates and individuals to donate.
Leaders’ donations
Interestingly, while Mr. Yediyurappa announced that he would contribute a year’s salary to CMRF, Governor Vajubhai Vala announced a contribution of 30% of monthly emoluments to PM CARES. As many as 25 BJP MPs and one independent MP elected from the State, heeding to a call from BJP national president J.P. Nadda, have contributed ₹1 crore each to PM CARES from their MP Local Area Development Scheme funds of 2019-20.
Government sources said that various departments that deal with corporates, such as Commerce and Industry, were in talks with private companies for making COVID-19-related contributions in cash or kind. The State government-managed PSUs are also being encouraged to contribute to the fund.
When asked if the contributions to PM CARES had affected local corporate funding to CMRF, Additional Chief Secretary (Energy) Mahendra Jain, who heads the committee for coordinating the response from NGOs and corporates, said, “There is no conflict of interest as the fund is to be used for COVID-19 aid, whether it is donated to PM CARES or CMRF. Some have given funds to the State relief fund and some others for the Centre, while some have donated to both.”
