The R&D will have to be carried out in collaboration with the government
The government on Tuesday amended the Corporate Social Responsibility (CSR) norms to include Research and development (R&D) spending on new vaccine, drugs, medical devices related to COVID-19.
“Any company engaged in research and development activity of new vaccine, drugs and medical devices in their normal course of business may undertake research and development activity of new vaccine, drugs and medical devices related to COVID-19 for financial years 2020-21, 2021-22 and 2022-23 subject to the conditions,” said a gazette notification, issued on Monday.
The notification further said that the spending will have to be made in financial years 2020-21, 2021-22 and 2022-23 and the R&D should be carried out in collaboration with the government nominated institutes or organisations.
In July this year, government had tightened CSR norms saying companies will have to explain where they have spent money allocated for the same, adding that the companies have to move this money to an escrow account if not spent.
