National Disaster Response Fund (NDRF)

Why in News?

The Centre approved ₹2,006.40 crore aid for Himachal Pradesh to support recovery from 2023 monsoon damage, including cloudbursts, flash floods, and landslides, through the National Disaster Response Fund (NDRF).

Description:

1. Legal Basis: Defined under Section 46 of the Disaster Management Act, 2005.
2. Purpose: Meant to cover emergency response, relief, and rehabilitation expenses due to any threatening disaster situation or disaster.
3. Relation to SDRF: Supplements the State Disaster Response Funds (SDRF) in case of severe disasters, if SDRF funds are insufficient.
4. Account Location: Placed under the “Public Account” of India under “Reserve funds not bearing interest” – hence, no parliamentary approval needed for withdrawals.
5. Eligible Disasters:
   1. Natural: Cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloudburst, pest attack, cold wave, frost.
   1. Man-made: Terrorist attacks, chemical, biological, and nuclear disasters (as notified by GoI).
6. Funding Procedure:
   1. States submit a memorandum showing sector-wise damage.
   1. The Central Government assesses and allocates additional funds accordingly.
7. Usage Scope:
   1. Meant only for immediate relief (not for reconstruction, preparedness, or mitigation).
   1. No compensation for property or crop loss.
8. Financing Sources:
   1. Funded via cess on excise/customs duty on specified items.
   1. Additional funds come from general budgetary resources.
9. Governing Authority: Decisions on NDRF usage are taken by the National Executive Committee (NEC) under NDMA.
10. Audit: Annually audited by the Comptroller and Auditor General (CAG).

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