National and State Disaster Response Funds

The State Disaster Response Fund (SDRF) and National Disaster Response Fund (NDRF) are government funds that pay for eligible relief after disasters. The SDRF is the state's primary source of immediate relief funding, while the NDRF provides supplementary central assistance when a disaster is severe and the state's available resources are inadequate.

Legal basis and complementary roles

The Disaster Management Act, 2005 provides the statutory basis for these funds. They operate as complementary financing arrangements rather than as automatic compensation schemes for all disaster losses.

• Section 46 provides for the NDRF to meet expenditure on emergency response, relief and rehabilitation in accordance with central guidelines.
• Section 48 provides for the establishment of the SDRF at the state level.
• Assistance from these funds follows prescribed eligibility conditions, expenditure items and financial norms.

Where the money comes from

The SDRF pools Union and state contributions, whereas the NDRF supplies additional financing through the Union government.

• The Centre ordinarily contributes 75% of the SDRF allocation for general-category states, with the state contributing the remaining 25%.
• For northeastern and Himalayan states, the Centre ordinarily contributes 90%, while the state contributes 10%.
• Central contributions to the SDRF are normally released in two instalments, subject to applicable release conditions.
• The NDRF receives central government funding through parliamentary appropriation; the Act also permits contributions from persons or institutions.

What relief expenditure is supported

Funding is governed by notified disasters and assistance norms. Eligible hazards include floods, cyclones, droughts and earthquakes.

• Eligible assistance includes immediate shelter, food, drinking water and medical care for affected people.
• Prescribed assistance may cover deaths and injuries, damaged houses, crop losses and livestock losses.
• Permitted expenditure also includes specified immediate restoration of essential public infrastructure.
• Relief assistance is not full compensation for every loss; comprehensive reconstruction and long-term development require other financing arrangements.

How supplementary national assistance is approved

When a disaster is of a severe nature, the state may seek additional central assistance through a memorandum describing damage and relief requirements.

• An Inter-Ministerial Central Team assesses the situation and eligible requirements.
• A High-Level Committee considers assistance following the prescribed appraisal process.
• The amount approved depends on admissible relief needs and available state resources, rather than the state's total reported economic losses.