The National Disaster Response Fund (NDRF) is an important instrument for providing financial assistance to the states and the people affected by disasters of severe nature.
India is a country that is prone to various natural and man-made disasters such as earthquakes, floods, cyclones, droughts, fires, terrorist attacks, etc. These disasters cause immense loss of life and property and disrupt the normal functioning of society. To deal with such situations, the Government of India has established a mechanism for disaster management at the national, state and district levels. One of the key components of this mechanism is the National Disaster Response Fund (NDRF).
What is NDRF?
The National Disaster Response Fund (NDRF) is a fund managed by the Central Government and is used for meeting the expenses incurred during emergency relief, disaster response and rehabilitation in the event of a disaster. It was earlier called the National Calamity Contingency Fund (NCCF) which had been operated as per the guidelines laid down by the 11th Finance Commission.
In 2005, the Disaster Management Act (DMA) was enacted and this renamed the NCCF as the National Disaster Response Fund (NDRF). Accordingly, the funds of the NCCF were merged into the NDRF. Section 46 of the DMA defines the NDRF. The NDRF is placed in the “Public Account” of GOI under “reserve funds not bearing interest”.
Since it is placed in the public accounts, the government does not require parliamentary approval to take money out of this fund. The NDRF supplements the State Disaster Response Fund (SDRF) in case of a disaster of severe nature, provided adequate funds are not available in SDRF. The NDRF is audited by the Comptroller and Auditor General (CAG). The detailed accounts of NDRF are maintained by the Controller General of Accounts (CGA) through the Chief Controller of Accounts, Finance Ministry.
Purpose of NDRF
The purpose of NDRF is to provide immediate relief to the people affected by disasters when state funds are inadequate. The fund is used for providing assistance to individuals or families affected by disasters such as house damage, crop loss, cattle loss, clothing, utensils, etc.
The fund is also used for providing assistance to state governments for carrying out relief operations such as evacuation, rescue, medical care, shelter, food, water supply, sanitation, etc. The fund is also used for providing assistance to central ministries or agencies for deploying resources such as helicopters, boats, satellite phones, etc. for disaster response.
The fund is not used for disaster preparedness, restoration, reconstruction and mitigation. These activities are funded by other schemes such as National Disaster Mitigation Fund (NDMF), National Cyclone Risk Mitigation Project (NCRMP), National Flood Management Programme (NFMP), etc.
Calamities covered under NDRF
The NDRF covers natural calamities such as earthquakes, cyclones, droughts, fires, tsunamis, floods, landslides, hailstorms, avalanches, pest attacks and cloud bursts deemed to be of severe nature by the Indian Government and for which the state government requires funds in excess of the balance available with its SDRF.
The NDRF also covers man-made disasters such as terrorist attacks, chemical or biological disasters or nuclear disasters as notified by the Central Government.
Recent Development
In July 2020, the Government of India had allowed any person or institution to contribute to the National Disaster Response Fund (NDRF) for the purpose of disaster management, in the wake of the COVID-19 pandemic.
This was done by amending Section 46(1)(b) of the DMA which earlier allowed only contributions from any person or institution in India or abroad to be credited into SDRF. This move was aimed at enhancing the availability of funds for disaster response and relief during the pandemic.
In August 2020, the Supreme Court had directed the Centre to transfer Rs 500 crore from PM CARES Fund to NDRF for COVID-19 relief measures3. The court had also directed that all contributions made by individuals and institutions for COVID-19 relief should be transferred to NDRF unless they specify that they want their contributions to go to PM CARES Fund or any other fund.
In April 2021, the Centre had released Rs 8,873.6 crore to 25 states from SDRF for COVID-19 containment measures such as setting up quarantine facilities, testing labs and oxygen generation plants. The Centre had also approved additional assistance of Rs 4,381.88 crore from NDRF to six states affected by cyclone Yaas and Tauktae.
In August 2023, the Centre sanctioned an advance of Rs 200 crore from the National Disaster Response Fund (NDRF) to support Himachal Pradesh’s relief efforts for its rain-stricken populace. Prior to this, the Union Home Ministry had approved an advance release of Rs 360.80 crore from the State Disaster Response Fund in two phases on July 10 and 17.
Furthermore, on August 7, the Central government disbursed Rs 189.27 crore of the state’s outstanding dues from the NDRF. This financial assistance is intended to aid Himachal Pradesh in providing relief during the current monsoon season. The central government remains vigilant regarding Himachal Pradesh’s situation, consistently offering the necessary logistical and financial assistance to ensure the state’s effective response.
Conclusion
The National Disaster Response Fund (NDRF) is an important instrument for providing financial assistance to the states and the people affected by disasters of severe nature. The fund is managed by the Central Government and is supplemented by contributions from various sources. The fund is used for providing immediate relief and response during disasters and not for long-term recovery and reconstruction. The fund is subject to audit and accountability by the CAG and the CGA. The fund is also subject to judicial scrutiny and public scrutiny by the media and civil society. The fund is a reflection of the commitment of the Government of India to ensure the safety and well-being of its citizens in times of crisis.
