High Level Committee approves Rs 1,816.162 crore of additional Central assistance to five States

Tags: Economy/Finance National News

A High Level Committee meeting, chaired by Union Home Minister, Amit Shah on 13 March approved Rs 1,816.162 crore of additional Central assistance to five States.

An overview of the news

• This additional central assistance has been given under the National Disaster Response Fund (NDRF) to five states affected by floods, landslides, cloud bursts during 2022.

• This additional assistance is in addition to the funds released by the Center to the states in the State Disaster Response Fund (SDRF).

• During the financial year 2022-23, the central government has released Rs 15,770.40 crore to 25 states in their SDRF and Rs 502.744 crore to 4 states from NDRF.

Additional central assistance to five states

1. Rs 520.466 crore to Assam

2. Rs 239.31 crore to Himachal Pradesh

3. Rs 941.04 crore to Karnataka

4. Rs 47.326 crore to Meghalaya

5. Rs 68.02 crore to Nagaland

National Disaster Response Fund (NDRF)

• It is a fund managed by the Central Government.

• It is used to meet the expenses of emergency response, relief and rehabilitation for any disaster situation.

• It was earlier called National Disaster Contingency Fund (NCCF).

• In 2005, the Disaster Management Act was enacted and its name was changed to National Disaster Response Fund (NDRF).

• NDRF was established in accordance with Section 46 of the Disaster Management Act, 2005.

• In June 2020, the Finance Ministry approved a proposal to allow individuals and institutions to contribute directly to the NDRF.

State Disaster Response Funds (SDRF)

• It has been constituted under the Disaster Management Act, 2005.

• It was constituted on the recommendations of the 13th Finance Commission.

• It is the primary fund available with the State Governments to meet the expenditure for providing immediate relief for the response to notified disasters.

• The Centre contributes 75% of the SDRF allocation for general category States and Union Territories. 

• The Centre contributes 90% for special category States and Union Territories (northeastern States, Sikkim, Uttarakhand, Himachal Pradesh, Jammu and Kashmir).

• Disaster covered under SDRF are Cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloudburst, pest attack, frost and cold waves.