The coverage of the funds recommended by 15th Finance Commission goes beyond the disaster response funds that already exist at the national (NDRF) and state (SDRF) levels. Hence, 15th Finance Commission has recommended the creation of funds for disaster mitigation along with disaster response, which will now together be called National Disaster Risk Management Fund (NDRMF) and State Disaster Risk Management Funds (SDRMF).

The Commission has also recommended an allocation of Rs. 1,60,153 crores in the SDRMF for the years 2021-26, out of which Rs. 1,28,122 crore (80% of SDRMF) is for State Disaster Response Fund and Rs. 32,031 crore (20% of SDRMF) is for State Disaster Mitigation Fund.

Similarly, an amount of Rs. 68,463 crore has been allocated for NDRMF for the period of 2021-22 to 2025-26 out of which Rs. 54,770 crore(80% of NDRMF) is for National Disaster Response Fund and Rs. 13,693 crore (20% of NDRMF) is for National Disaster Mitigation Fund.

The Commission has recommended “earmarked allocation” from NDRF for two activities:

• Expansion and Modernization of Fire Services (Rs. 5000 crore).The scheme has been issued by the Government of India to the states on 4th July, 2023)
• Resettlement of displaces people affected by erosion (Rs. 1000 crore).

The Commission has recommended “earmarked allocation” from NDMF for four activities:

• catalytic assistance to twelve most drought-prone States ((Rs. 1200 crore);
• managing seismic and landslide risks in ten hill States (Rs. 750 crore);
• reducing the risk of urban flooding in seven most populous cities (Rs. 2500 crore); and
• mitigation measures to prevent erosion (Rs. 1500 crores).

State Disaster Response Fund

The State Disaster Response Fund (SDRF), constituted under Section 48 (1) (a) of the Disaster Management Act, 2005, is the primary fund available with State Governments for responses to notified disasters. The Central Government contributes 75% of SDRF allocation for general category States/UTs and 90% for special category States/UTs (NE States, Sikkim, Uttarakhand, Himachal Pradesh, Jammu and Kashmir). The annual Central contribution is released in two equal installments as per the recommendation of the Finance Commission. SDRF shall be used only for meeting the expenditure for providing immediate relief to the victims.

Disaster (s) covered under SDRF: Cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloudburst, pest attack, frost and cold waves.

Local Disaster: A State Government may use up to 10 percent of the funds available under the SDRF for providing immediate relief to the victims of natural disasters that they consider to be ‘disasters’ within the local context in the State and which are not included in the notified list of disasters of the Ministry of Home Affairs subject to the condition that the State Government has listed the State specific natural disasters and notified clear and transparent norms and guidelines for such disasters with the approval of the State Authority, i.e., the State Executive Authority (SEC).

National Disaster Response Fund

The National Disaster Response Fund (NDRF), constituted under Section 46 of the Disaster Management Act, 2005, supplements SDRF of a State, in case of a disaster of severe nature, provided adequate funds are not available in SDRF.

Funding of National Disaster Response Fund (NDRF) and State Disaster Response Fund (SDRF)

The Government of India supplements the effort of the State Government by providing assistance for relief of immediate nature through two ways (i) State Disaster Response Fund (SDRF) and (ii) National Disaster Response Fund (NDRF) as per established procedure.

The allocation of funds under SDRF and NDRF is based on the recommendations of the successive Financial Commissions. For SDRF, the contribution is made by the Central Government and State Governments in the ratio of 75:25 to all states, except for the North-Eastern and Himalayan States, for which it is 90:10 ratio, while in NDRF, the entire contribution in the fund comes from the Central Government.

In order to ensure additional source of funding to National Disaster Response Fund (NDRF), the Central Government has laid out the modalities for receipt of contributions/ grants from any person or institution for the purpose of disaster management in the National Disaster Response Fund (NDRF), as per Section 46 (1) (b) of the Disaster Management Act, 2005, as an additional source of funding to NDRF. Accordingly, contributions/ grants are accepted from any person or institution in NDRF through any of the following mode:

• Through physical instruments: to be drawn favoring "PAO (Secretariat), MHA" at New Delhi. On the back of the instrument, the individual may mention the remarks for "Contributions/ Grants to NDRF".
• Through RTGS/ NEFT/ UPI: Contributions may also be made through RTGS/ NEFT indicating the purpose as "Contributions/ Grants to NDRF" and deposited in the Receipt Account No. 10314382194, IFSC Code- SBIN0000625, State Bank of India, Central Sectt Branch, New Delhi.
• Through Bharatkosh portal https://bharatkosh.gov.in using Net banking, Debit Cards, Credit Cards & UPI as per following steps:
  • Click on "Quick Payment" option on the home page https://bharatkosh.gov.in.
  • On the next page, select the Ministry as "Home Affairs" and the purpose as "Contributions/ Grants to NDRF" and the website would further guide for payment.

National Disaster Mitigation Fund (NDMF) & State Disaster Mitigation Fund (SDMF)

15th Finance Commission, in its report had made recommendations for setting up Mitigation Funds and suggested allocations at National and State level. Accepting the recommendations of the Finance Commission, Central Government has allocated Rs. 13,693 crore for the National Disaster Mitigation Fund (NDMF) and Rs. 32,030.60 crore for State Disaster Mitigation Fund (SDMF) for the period 2021-22 to 2025-26. Further Rs 5,796.60 crore was also allocated for SDMF for the period of 2020-21, based on the interim recommendations of the15th Finance Commission.

Central Government had constituted the National Disaster Mitigation Fund (NDMF) on 05.02.2021 and also advised all the State Governments to set up State Disaster Mitigation Fund (SDMF) in the State. So far, all the States, except Telangana, have intimated setting up of SDMF.

For the first time allocation of funds, exclusively for the mitigation of disaster risks, has been made by the Government, both at national and state level. It will help the States in carrying out mitigation activities for reducing the impact of disasters.

Central Government contributes 75% for all States (90% for North-Eastern and Himalayan States) as Centre share in SDMF.

Guidelines

For Guidelines and Items & Norms of assistance, click here