Companies can spend their CSR funds for activities related to the 'Har Ghar Tiranga' campaign, according to the government.
The campaign is being organised by the government as part of the Azadi Ka Amrit Mahotsav to encourage people to bring home the national flag and hoist it to mark the 75th year of India's independence.
Under the Companies Act, 2013, certain class of profitable companies are required to shell out at least two per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities.
In a circular on Tuesday, the corporate affairs ministry said the campaign is aimed to invoke the feeling of patriotism in the hearts of people and to promote awareness about the Indian national flag.
"... Spending of CSR funds for the activities related to this campaign such as mass scale production and supply of the national flag, outreach and amplification efforts and other related activities are eligible CSR activities," the circular said.
The activities are eligible for CSR funds under the provisions of Schedule VII of the Companies Act pertaining to promotion of education relating to culture.
Schedule VII pertains to CSR activities.
The circular also noted that companies can undertake these activities subject to fulfilling the Companies (CSR Policy) Rules, 2014 and related circulars/ clarifications issued by the ministry.
The Companies Act, 2013 is implemented by the ministry.