National Disaster Response Fund (NDRF)

Why in news?

• Recently a PIL has been filed before the supreme court demanding an ex-gratia compensation of ?four lakh for each of the nearly 3.85 lakh people who died due to Covid-19 in the country.

About the Fund:

• The National Disaster Response Fund (NDRF) is constituted under the Disaster Management Act, 2005.
• It supplements State Disaster Response Fund (SDRF) of a State, in case of a disaster of severe nature, provided adequate funds are not available in SDRF.
• The July 2015 guidelines states that natural calamities of cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloud burst, pest attack and cold wave and frost considered to be of severe nature by Government of India (GoI) and requiring expenditures by a state government in excess of the balances available in its own SDRF will qualify for immediate relief assistance from NDRF.
• The financial assistance from SDRF/NDRF is for providing immediate relief and is not compensation for loss/damage to properties /crops. In other words, NDRF amount can be spent only towards meeting the expenses for emergency response, relief and rehabilitation.
• NDRF is located in the “Public Accounts” of Government of India under “Reserve Funds not bearing interest”.
• Department of Agriculture and Cooperation under Ministry of Agriculture (MoA) monitors relief activities for calamities associated with drought, hailstorms, pest attacks and cold wave /frost while rest of the natural calamities are monitored by Ministry of Home Affairs (MHA).
• Comptroller and Auditor General of India (CAG) audits the accounts of NDRF.

About SDRF:

• The SDRF is the primary fund available with State governments to meet the expenses of relief operations of an immediate nature, for a range of specified disasters.
• The Centre contributes 75% of the SDRF allocation for general category States and Union Territories, and 90% for special category States (northeast States, Sikkim, Uttarakhand, Himachal Pradesh, and Jammu & Kashmir).

PRELIMS QUESTION

Consider the following statements about National Disaster response fund (NDRF):
  1.    NDRF is  part of consolidated fund of India.
  2.    Comptroller and Auditor General of India (CAG) audits the accounts of NDRF.
 Which among the above statements is/are correct?
(a)    1 only 
(b)    2 only 
(c)    Both 1 and 2
(d)    Neither 1 nor 2

Answer to prelims question