Section 46 of the Disaster Management Act, 2005 (DM Act) ational Disaster Response Fund is defined in 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.
Features of NDRF Grants
- 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 financial assistance from SDRF/ NDRF is for providing immediate relief and is not compensation for loss/damage to properties/ crops. NDRF amount can be spent only towards meeting the expenses for emergency response, relief and rehabilitation.
- For projects exclusively for the purpose of mitigation, i.e, measures aimed at reducing the risk, impact of a disaster, a separate fund called National Disaster Mitigation Fund has to be constituted.
Administration of NDRF
- The National Executive Committee (NEC) of the National Disaster Management Authority takes decisions on the expenses from the National Disaster Response Fund, in accordance with the guidelines laid down by the Central Government in consultation with the National Authority.
- Based on the recommendations of NEC, a High Level Committee (HLC) will approve the quantum of immediate relief to be released from NDRF. HLC consists of Finance Minister, Agriculture Minister, Home Minister, and Vice Chairman-NITI AAYOG as members.
- The NDRF is financed through the levy of a cess on certain items and approved annually through the Finance Bill. The requirement for funds beyond what is available under the NDRF is met through general budgetary resources.
- NDRF is located in the Public Accounts of Government of India under ‘Reserve Funds not bearing interest’.
- The Department of Agriculture and Cooperation under the 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 the Ministry of Home Affairs (MHA).
- Comptroller and Auditor General of India (CAG) audits the accounts of NDRF.