An Introduction to the National Disaster Response Fund (NDRF)

The National Disaster Response Fund is a central government-managed fund. It is primarily used for covering the costs associated with emergency relief, disaster response, and rehabilitation following a disaster.

• The fund was initially known as the National Calamity Contingency Fund (NCCF), which operated according to the guidelines set by the 11th Finance Commission.
• In 2005, the Disaster Management Act (DMA) was passed, which renamed the NCCF as the National Disaster Response Fund (NDRF). As a result, the NCCF's funds were transferred into the NDRF. Section 46 of the DMA provides a definition of the NDRF.
• The NDRF is categorized under the “Public Account” of the Government of India (GOI) in the section “reserve funds not bearing interest”. Being part of the public accounts allows the government to withdraw money from this fund without needing parliamentary approval.
• The NDRF complements the State Disaster Response Fund when the state funds are not sufficient to provide immediate relief in the event of severe calamities.
• The Comptroller and Auditor General (CAG) audits the NDRF.
• The Controller General of Accounts (CGA) maintains the detailed accounts of the NDRF through the Chief Controller of Accounts, Finance Ministry.

Calamities Covered Under the NDRF

The NDRF covers natural calamities such as earthquakes, cyclones, droughts, fires, tsunamis, floods, landslides, hailstorms, avalanches, pest attacks, and cloudbursts. These are considered severe by the Indian Government and necessitate the state government to require funds exceeding the balance available with its State Disaster Response Fund (SDRF).

The NDRF is used for providing immediate relief to the victims of the above-listed disasters when state funds fall short. However, the NDRF (or the SDRF) is not employed for disaster preparedness, restoration, reconstruction, or mitigation.

Please note that the National Disaster Response Fund and the National Disaster Response Force (NDRF) are different entities.

Funding of the NDRF

The NDRF is funded through cesses on certain items subjected to excise and customs duty, and it is approved annually via the Finance Bill. Currently, a National Calamity Contingent Duty (NCCD) is levied to fund the NDRF, and additional budgetary support is provided as needed. The NCCD is imposed on goods listed in the Seventh Schedule (goods manufactured or produced).

Furthermore, there is a provision that allows people or institutions to contribute to the NDRF. This provision was utilized by the government in June 2020 when it declared that anyone or any institution could contribute to the fund.