The Chief Minister’s Covid-19 Relief Fund, which was set up by theKarnataka governmentin May-June 2020 soon after the pandemic broke out, attracted Rs 318 crore until November-December last year. In the second wave that has exposed chinks in the state’s medical , the fund has received as little as Rs 2 crore in April-May this year.
Sources said the State Government was expecting private companies, philanthropists and individuals to loosen their purse strings and make generous contribution to ramp up medical infrastructure, with the state witnessing a frightening surge in new infections and deaths in the past month. However, the state’s Covid-19 relief fund is now left with Rs 9 crore – Rs 2 crore raised this year and Rs 7 crore unspent from last year.
Another likely reason is that the Centre has tweaked exemption terms under corporate social responsibility (CSR) spending.
Now, the Centre allows private companies to seek CSR exemption for funds directly spent on Covid relief work or on material assistance they are providing to the public. This, sources said, may have forced a majority of big companies to reduce their financial assistance.