FM released the first installment worth Rs 8,873 cr of SDRF to states

The Finance Ministry has released in advance to the states the first installment worth Rs 8,873.6 crore of the state disaster response fund (SDRF) for the current fiscal.

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Normally, the first installment of SDRF is released in the month of June as per the recommendations of the Finance Commission.

However, in relaxation of normal procedure, not only has the release of SDRF been advanced but the amount has also been released without waiting for the utilization certificate of the amount provided to the States in the last financial year.

Up to 50% of the amount released i.e. Rs.4436.8 crore can be used by the States for COVID-19 containment measures. The funds from SDRF may be used by the States for various measures related to the containment of COVID-19.

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).

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