CENTRE'S DISASTER RELIEF FUNDS - GOVERNANCE

News: Why Tamil Nadu is claiming disaster relief funds from the Centre

 

What's in the news?

       The Tamil Nadu Government has filed a suit in the Supreme Court, accusing the Centre of withholding National Disaster Relief Funds (NDRF) following Cyclone Michaung and floods in December 2023.

 

Assistance Mechanisms for States During Natural Disasters:

       Natural disaster assistance mechanisms are governed by the Disaster Management Act, 2005, which defines disasters as significant events causing extensive loss of life, property damage, or environmental degradation beyond the community's coping capacity.

       The Act established the National Disaster Management Authority (NDMA) and State Disaster Management Authorities (SDMAs) to coordinate disaster response efforts at the national, state, and district levels.

 

Financial Assistance:

States receive financial assistance for disaster relief from two main sources such as

       State Disaster Relief Fund (SDRF)

       National Disaster Relief Fund (NDRF)

 

Release of Funds from the NDRF:

       The National Disaster Response Fund (NDRF), previously known as the National Calamity Contingency Fund (NCCF), is managed by the Central Government to address emergency response, relief, and rehabilitation needs during severe disaster situations.

       States can request assistance from the NDRF when faced with calamities beyond their coping capacity and insufficient funds in their SDRF.

       The Ministry of Home Affairs (MHA) or the Ministry of Agriculture evaluates the situation and may form an Inter-Ministerial Central Team (IMCT) to assess the need for additional funding.

       A sub-committee of the National Executive Committee determines the funding allocation, and a high-level committee chaired by the Home Minister authorizes the release of NDRF funds based on recommendations.

 

State Disaster Relief Fund (SDRF):

       The SDRF, constituted under Section 48 (1) (a) of the Disaster Management Act, 2005, is the primary fund available to state governments for immediate relief efforts in notified disasters.

       Audited annually by the Comptroller and Auditor General of India (CAG), the SDRF is financed by both the central and state governments.

       The central government contributes 75% of the allocation for general category states and union territories, and 90% for special category states and union territories (such as northeastern states, Sikkim, Uttarakhand, Himachal Pradesh, and Jammu and Kashmir).

       SDRF funds are utilized for various disasters including cyclones, droughts, earthquakes, floods, landslides, and other calamities, as well as local disasters not listed by the Ministry of Home Affairs.