National Disaster Response Fund

The National Disaster Response Fund (NDRF) is a Union-level fund that provides additional financial assistance for disaster relief when a state's own disaster response resources are insufficient. Established under Section 46 of the Disaster Management Act, 2005, it finances emergency response, relief and rehabilitation rather than compensating every disaster-related loss.

Statutory basis and sources of money

Section 46 authorises the Central Government to constitute the fund by notification for meeting a threatening disaster situation or disaster. Its financing combines public money with contributions permitted by the Act.

• The Central Government may contribute money after appropriation by Parliament, meaning that expenditure must have parliamentary authorisation.
• The Act also permits grants from any person or institution for disaster management to be credited to the fund.
• The fund meets expenditure on emergency response, relief and rehabilitation according to Central Government guidelines framed in consultation with the National Disaster Management Authority.

How assistance reaches disaster-affected states

The State Disaster Response Fund (SDRF) is the primary source for immediate relief at the state level. The NDRF supplements it for disasters of a severe nature when the resources available in the SDRF are inadequate.

• The state government submits a memorandum seeking additional assistance, describing the damage and the relief requirements.
• An Inter-Ministerial Central Team assesses the disaster's impact and the state's requirements; central consideration follows the prescribed assessment process.
• A High-Level Committee considers additional central assistance on the basis of the assessment and applicable relief norms.
• Approved assistance is released to the state for eligible relief expenditure; the state's estimate of total damage does not itself determine the grant.

What the fund pays for, and its limits

Assistance is governed by notified eligible disasters, expenditure items and relief norms. Drought, floods, cyclones and earthquakes are among the disasters covered by the relief framework.

• Eligible assistance includes immediate needs such as food, drinking water, temporary shelter and medical care, as well as specified assistance for damaged houses and agricultural losses.
• Assistance provides relief within prescribed limits; it is not full compensation for all losses suffered by individuals or the economy.
• Long-term reconstruction and broader development expenditure are not the fund's normal purpose; immediate restoration is supported only where permitted by the relief guidelines.
• The fund is distinct from the National Disaster Response Force, which is a specialist operational force rather than a financing mechanism.