Context:
Himachal Pradesh has urgently appealed to the Indian Prime Minister for the declaration of the extensive damage caused by heavy rains in the state as a National Disaster. The region has incurred losses amounting to Rs 10,000 crore, and there have been unfortunate casualties with around 418 people losing their lives in rain-related incidents during the Monsoon of 2023. In such grave calamities, the state seeks additional Central assistance from the National Disaster Response Fund.
Relevance:
GS III: Disaster Management
Dimensions of the Article:
- Assisting States During Natural Disasters
- National Disaster Response Fund (NDRF)
- Severe Calamity
- Procedure for Disaster Relief in India
Assisting States During Natural Disasters:
No Defined “National Disasters” Category:
- There is no specific, officially defined category of “National Disasters.”
Definition under Disaster Management Act 2005:
- Natural disasters fall under the purview of the Disaster Management Act 2005.
- The Act defines a “disaster” as a significant event arising from natural or man-made causes, accidents, or negligence.
- It results in substantial loss of life, human suffering, property damage, or environmental degradation.
- Such events must exceed the coping capacity of the affected community.
Role of National Disaster Management Authority (NDMA):
- The Act established the National Disaster Management Authority (NDMA), led by the Prime Minister.
- The NDMA plays a central role in coordinating disaster response at the national level.
State Disaster Management Authorities (SDMAs):
- The Act also mandates the creation of State Disaster Management Authorities (SDMAs), each headed by the respective Chief Minister.
- SDMAs oversee disaster preparedness and response within their states.
National Disaster Response Force (NDRF):
- The Act led to the formation of the National Disaster Response Force (NDRF).
- NDRF comprises multiple battalions or teams responsible for on-ground relief and rescue operations in various states.
National Disaster Response Fund (NDRF)
- National Disaster Response Fund (NDRF) is established under Section 46 of the Disaster Management Act, 2005.
- Managed by the Central Government, it serves to provide financial resources for emergency response, relief, and rehabilitation in the wake of threatening disaster situations or disasters.
Funding and Management:
- The NDRF is placed in the “Public Account” of the Government of India (GOI), categorized as “reserve funds not bearing interest.”
- It is intended to supplement the funds available in State Disaster Response Funds (SDRF) when a severe disaster occurs, and the state’s resources are inadequate.
Eligibility Criteria:
- NDRF provides financial assistance for natural calamities such as cyclones, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloud burst, pest attack, cold wave, and frost.
- These calamities must be of severe nature as determined by the Government of India (GoI), requiring expenditures beyond what a state’s SDRF can cover.
Claiming Assistance:
- States submit a memorandum detailing sector-wise damage and funding requirements to the Centre.
- The Centre assesses the damage and decides whether to grant additional funds from NDRF.
- NDRF funds are for immediate relief, not compensation for property or crop loss. They cover emergency response, relief, and rehabilitation efforts.
Decision Authority:
- The National Executive Committee (NEC) of the National Disaster Management Authority (NDMA) takes decisions regarding the utilization of funds from the NDRF.
Sources of Financing:
- NDRF is financed through a cess (levy) on specific items subject to excise and customs duty.
- The cess amount is approved annually through the Finance Bill.
- If NDRF resources are insufficient, additional funds are allocated from the general budgetary resources.
Significance:
- NDRF plays a critical role in enabling prompt and effective response to disasters, ensuring that states have access to financial resources beyond their SDRF capacities.
- It exemplifies the cooperative federalism approach where the Central Government supports states during times of severe crises.
Severe Calamity:
- A severe calamity is a catastrophic event or disaster of significant magnitude and intensity.
- It results in widespread damage, loss of life, and disruption of normal life.
- When a calamity is declared to be of severe nature, it triggers a specific procedure for disaster relief and financial assistance.
Procedure for Disaster Relief in India:
Memorandum Submission:
- The state government submits a memorandum detailing the extent of damage caused by the disaster and its financial requirements for relief operations.
On-Spot Assessment:
- An inter-ministerial central team conducts an on-the-spot assessment of the damage and financial requirements for relief efforts.
Assessment Review:
- Committees review the assessment reports, and a High-Level Committee must approve the amount of immediate relief to be released from the National Disaster Response Fund (NDRF).
Support and Monitoring:
- The Disaster Management Division of the Ministry of Home Affairs provides support and monitors the utilization of funds.
State Disaster Response Fund (SDRF):
- SDRF is the primary fund available with State Governments for responses to notified disasters.
National Disaster Response Fund (NDRF):
- If the resources in the SDRF are insufficient, additional assistance may be considered from the NDRF, which is fully funded by the Central Government.
Budgetary Allocations:
- Funds for the NDRF and SDRFs are allocated by the government as part of budgetary allocations.
Relief Measures:
- Relief measures may include providing relief in the repayment of loans or offering fresh loans to affected individuals on concessional terms.
Finance Commission Recommendations:
- Funds for immediate relief are recommended by the Finance Commission, which adopts a methodology for state-wise allocations based on factors like past expenditure, risk exposure (area and population), and hazard and vulnerability of states.
Central Contributions:
- Central contributions for disaster relief are released in two equal installments, contingent upon the submission of utilization certificates and reports on activities undertaken by state governments.
-Source: The Hindu
