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Centre approves disaster relief fund to seven states and what is National Disaster Respond Fund

Posted on : 10 Jan 2020

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  • The Centre approved the release of Rs 5,908.56 crore to seven states, including Uttar Pradesh, Karnataka and Assam, as assistance for the damage caused due to various calamities last year.
  • The decision to release fund for these seven states was taken by a high-level committee chaired by Union Home Minister Amit Shah.
  • The HLC approved additional central assistance of Rs 5908.56 crore to seven states from the National Disaster Response Fund (NDRF).
  • During 2019-20, the government has released Rs 8,068.33 crore to 27 states as central share from the State Disaster Response Fund (SDRF).
  • Kerala, which was ravaged by floods in both 2018 and 2019, failed to make the list of the beneficiary states for the second time
  • National Disaster Response Fund is defined in Section 46 of the Disaster Management Act, 2005 (DM Act) as a fund managed by the Central Government for meeting the expenses for emergency response, relief and rehabilitation due to any threatening disaster situation or disaster.
  • NDRF is constituted to supplement the funds of the State Disaster Response Funds (SDRF) of the states to facilitate immediate relief in case of calamities of a severe nature.
  • The DM Act defines "disaster" to mean ‘a catastrophe, mishap, calamity or grave occurrence in any area, arising from natural or man-made causes, or by accident or negligence which results in substantial loss of life or human suffering or damage to, and destruction of, property, or damage to, or degradation of, environment, and is of such a nature or magnitude as to be beyond the coping capacity of the community of the affected area.'
  • The July 2015 guidelines states that natural calamities of cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloud burst, pest attack and cold wave and frost considered to be of severe nature by Government of India (GoI) and requiring expenditures by a state government in excess of the balances available in its own SDRF will qualify for immediate relief assistance from NDRF.
  • In the event of a disaster of 'a severe nature', in which the funds needed for relief operations exceeded the balances in the SDRF account, additional assistance would be provided from the NDRF after following prescribed procedures.
  • The National Executive Committee (NEC) of the National Disaster Management Authority takes decisions on the expenses from National Disaster Response Fund, in accordance with the guidelines laid down by the Central Government in consultation with the National Authority. The revised norms for assistance from NDRF were issued on 8 April 2015.
  • Like its predecessor, NCCF, the NDRF is financed through the levy of a cess on certain items, chargeable to excise and customs duty, and approved annually through the Finance Bill.
  • NDRF is located in the "Public Accounts" of Government of India under "Reserve Funds not bearing interest".
  • Department of Agriculture and Cooperation under Ministry of Agriculture (MoA) monitors relief activities for calamities associated with drought, hailstorms, pest attacks and cold wave /frost while rest of the natural calamities are monitored by Ministry of Home Affairs (MHA).

Article Related Questions

  1. Consider the following statements regarding National Disaster Respond Fund
    1.Disaster Management Act defines the term disaster.
    2.The fund is managed by the President.
    3.NDRF is financed through the levy of a cess on certain items.
    Which of the following statement is/are correct?

  2. 1.1 and 2 only

    2.2 and 3 only

    3.1 and 3 only

    4.1, 2 and 3

    Right Ans : 1 and 3 only

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