National Disaster Response Fund

National Disaster Response Fund

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 (DM) Act, 2005.

Formation of 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.

Prime Minister is the Chairman of PMNRF and is assisted by Officers/ Staff on honorary basis.

The Ministry of Home Affairs, Government of India created the National Disaster Management Authority under which is an agency called National Disaster Response Force was established in 2009 in Delhi.

This agency focused on disaster management and specialised response to natural and man made disasters.

Role of National Disaster Response Fund

National Disaster Response Fund is managed by the Central Government for meeting the expenses for emergency response, relief and rehabilitation due to any threatening disaster situation or disaster.

The purpose of the NDRF is as follows:

• To extend its support to affected States and Union Territories during severe natural and man-made calamities.
• To supplement the State Disaster Response Fund (SDRF).
• To address the problem of disaster response and management at both state and national level.
• To carry out organisational arrangements such as scheduling, capacity building, monitoring and rehabilitation activities.

Financing of National Disaster Response Fund

Financed through the levy of a cess on certain items, chargeable to excise and customs duty, and approved annually through the Finance Bill.

Currently, a National Calamity Contingent Duty (NCCD) is levied to finance the NDRF and additional budgetary support is provided as and when necessary.

NCCD is levied in the case of goods specified in the Seventh Schedule (goods manufactured or produced).

The already existing National Calamity Contingency Fund (NCCF) is merged into the National Disaster Response Fund (NDRF). Hence, the closing balance of NCCF’s current financial year is considered as the opening balance of the NDRF.

The Central Government allocates 75% relief fund for the General Category States and 90% for the North-Eastern and other hilly States.

Generally, the initial relief expenses are borne by the SDRF and the NDRF supplements the States in case of severe calamities.