Government Expands Scope of Section 8 Activities under CSR

In a progressive move to boost corporate engagement in nation-building, the Government of India has officially expanded the scope of permissible activities for Section 8 companies under the Corporate Social Responsibility (CSR) framework. The new directive, issued by the Ministry of Corporate Affairs (MCA), allows these non-profit entities to undertake a broader range of development projects in partnership with CSR-contributing companies.

As per the revised norms, Section 8 companies can now execute CSR projects in emerging focus areas such as digital literacy, mental health, disaster preparedness, rural innovation, sustainable agriculture, and climate resilience. This comes in addition to the traditional domains of education, healthcare, sanitation, and environmental protection that were already recognized under Schedule VII of the Companies Act, 2013.

The government clarified that these expanded activities must still align with a company’s CSR policy and be reported through the mandated annual CSR disclosures. Section 8 companies must be duly registered with a valid CSR Registration Number, and maintain transparent records of fund utilization, measurable outcomes, and compliance with the new impact assessment rules.

Officials highlighted that the decision aims to empower CSR-eligible firms to collaborate more effectively with professionally managed non-profit partners. By expanding the activity spectrum, the government seeks to channel CSR funds into areas that address modern challenges and underserved segments of society.

The move has been welcomed by corporates and non-profit leaders alike, who see it as an opportunity to innovate and diversify the impact of CSR investments. With clearer guidance and a broader operational mandate, Section 8 companies are now better positioned to serve as trusted implementation partners in India’s socio-economic transformation.