National Disaster Mitigation Fund (NDMF)

The National Disaster Mitigation Fund (NDMF) is an institutional mechanism established by the Government of India to support activities aimed at preventing and reducing the risk of disasters. It forms a vital part of India’s comprehensive disaster management framework, providing financial assistance for capacity building, mitigation projects, and risk reduction measures in vulnerable areas across the country.

Background and Legal Framework

The concept of the National Disaster Mitigation Fund originated from the Disaster Management Act, 2005, which provides a statutory framework for disaster prevention, preparedness, and response. Section 47 of the Act specifically mandates the creation of the NDMF, distinct from the National Disaster Response Fund (NDRF).
While the NDRF is intended to meet expenses related to relief and response after a disaster has occurred, the NDMF is designed to finance projects and measures that reduce or prevent the impact of disasters before they happen. This legal distinction represents a proactive approach towards disaster risk management in India.

Objectives and Functions

The primary objectives of the National Disaster Mitigation Fund include:

• Funding preventive and mitigation projects such as flood control systems, earthquake-resistant infrastructure, and coastal zone protection.
• Supporting research and development in disaster risk reduction technologies.
• Building capacity in state and district-level disaster management authorities.
• Promoting community-based disaster preparedness programmes through awareness, training, and local-level participation.
• Integrating disaster risk reduction (DRR) into development planning at the national and state levels.

Thus, the Fund seeks to shift national focus from post-disaster relief to pre-disaster resilience and preparedness.

Administration and Funding Mechanism

The NDMF operates under the administrative control of the National Disaster Management Authority (NDMA), which functions under the Ministry of Home Affairs. The Central Government provides the financial corpus for the Fund, with possible contributions from:

• Budgetary allocations from the Union Government.
• Grants and donations from individuals, institutions, and international agencies.
• Funds transferred from other disaster management or climate adaptation schemes.

At the state level, a similar structure exists in the form of State Disaster Mitigation Funds (SDMFs), established under Section 48 of the Disaster Management Act. Both national and state funds are meant to ensure a coordinated flow of resources for mitigation activities.

Key Areas of Utilisation

The National Disaster Mitigation Fund supports a wide range of preventive and resilience-building initiatives, such as:

• Flood management and erosion control projects along major river systems.
• Seismic risk mitigation through retrofitting of public buildings and infrastructure.
• Cyclone shelters and early warning systems in coastal regions.
• Landslide prevention measures in Himalayan and hilly regions.
• Urban flood management and drainage improvement projects in major cities.
• Forest fire prevention and drought proofing programmes.

In addition to large-scale infrastructure projects, the NDMF also supports capacity development, institutional strengthening, and risk assessment studies.

Comparison with the National Disaster Response Fund

While both funds are central components of India’s disaster management system, their purposes and timing differ significantly:

This complementary structure ensures a holistic approach covering all stages of disaster management—mitigation, preparedness, response, and recovery.

Implementation Challenges

Despite its importance, the operationalisation of the National Disaster Mitigation Fund has faced several challenges since its inception:

• Delay in constitution and fund allocation at the national level due to procedural and financial constraints.
• Limited awareness and coordination between central and state agencies in implementing mitigation projects.
• Dependence on short-term relief-oriented funding mechanisms, which reduces emphasis on long-term mitigation.
• Insufficient integration with development planning and climate adaptation programmes.

These challenges have often been highlighted by the Comptroller and Auditor General (CAG) and parliamentary committees, urging stronger policy attention and fiscal backing for the Fund.

Significance in India’s Disaster Management Strategy

India’s geographic and climatic diversity exposes it to multiple natural hazards including floods, earthquakes, droughts, cyclones, and landslides. The establishment of the NDMF reflects the shift towards risk-informed development, recognising that effective mitigation reduces both human and economic losses in the long term.
In recent years, the Fund’s role has gained greater relevance in the context of climate change adaptation and sustainable development goals (SDGs), especially SDG 11 (Sustainable Cities and Communities) and SDG 13 (Climate Action). The fund also complements flagship initiatives such as the National Cyclone Risk Mitigation Project (NCRMP) and the National Landslide Risk Mitigation Programme (NLRMP).

Contemporary Developments

Efforts are ongoing to strengthen the financial and institutional framework of the NDMF. The Fifteenth Finance Commission (2021–26) has recommended enhanced allocation mechanisms for both response and mitigation activities, encouraging states to develop integrated disaster risk reduction strategies. Furthermore, collaboration with international agencies such as the United Nations Development Programme (UNDP) and the World Bank has contributed to technical and financial support for mitigation projects.