National Disaster Response Fund (NDRF)

The National Disaster Response Fund (NDRF) is a central financial mechanism established by the Government of India to provide assistance for relief, response, and rehabilitation in the aftermath of severe natural and human-induced disasters. It operates as a national reserve to supplement state resources during emergencies, ensuring a coordinated and timely financial response to large-scale calamities.

Background and Evolution

The origins of the NDRF can be traced to the National Calamity Contingency Fund (NCCF), which was constituted on the recommendations of the 11th Finance Commission in 2000. The NCCF served as a reserve to deal with natural calamities of severe magnitude. However, in line with the recommendations of the 13th Finance Commission, the NCCF was merged into the National Disaster Response Fund to create a more structured and legally backed mechanism for disaster management under the Disaster Management Act, 2005.
The NDRF was formally established in 2007 under the administrative control of the Ministry of Home Affairs (MHA) with an initial allocation of ₹100 crore. It was created to align with the statutory provisions under Section 46 of the Disaster Management Act, 2005, which mandates the constitution of a national fund for response and relief operations in the event of major disasters.

Purpose and Objectives

The National Disaster Response Fund is designed to provide financial assistance for emergency response, relief, and rehabilitation in cases of severe natural and man-made disasters. Its key objectives include:

• Providing immediate financial support to affected states and union territories when their resources are insufficient.
• Ensuring prompt relief and rehabilitation for affected populations.
• Supporting restoration of infrastructure and basic services in disaster-hit regions.
• Supplementing the State Disaster Response Funds (SDRFs) for large-scale calamities.

The NDRF thus serves as a national safety net, enabling the Central Government to respond swiftly and effectively to disasters of national significance.

Legal Framework and Administration

The NDRF derives its legal authority from Section 46 of the Disaster Management Act, 2005, which provides for the establishment of a fund to meet the expenses for emergency response, relief, and rehabilitation.
Key administrative features include:

• Administrative Control: Ministry of Home Affairs (MHA).
• Governing Authority: The National Executive Committee (NEC), constituted under the Disaster Management Act, oversees its utilisation and disbursement.
• Management: The fund is managed by the Central Government and placed under the “Public Account of India” as a reserve fund not bearing interest.

The NDRF functions alongside other components of India’s disaster management structure, including the National Disaster Management Authority (NDMA), State Disaster Response Funds (SDRFs), and the National Disaster Mitigation Fund (NDMF).

Funding Mechanism

The NDRF is entirely financed by the Central Government, though it can receive voluntary contributions from individuals, institutions, and corporate entities.
Major sources of funding include:

• Budgetary support from the Union Government.
• Transfers from the National Calamity Contingent Duty (NCCD)—a duty levied on certain goods such as tobacco, crude oil, and pan masala. The proceeds from NCCD are credited to the NDRF.
• Donations or grants from domestic or international agencies for disaster response purposes.

The fund is non-lapsable, ensuring continuity of resources for immediate deployment when disasters occur.

Functional Mechanism

The working structure of the NDRF revolves around financial assistance and coordination between the Central and State Governments during disaster events.

• Supplementing State Disaster Response Funds (SDRFs): When a disaster exceeds the coping capacity of a state and its SDRF resources are inadequate, the NDRF provides additional financial assistance.
• Central Team Assessments: After a state requests support, an inter-ministerial central team assesses the damage and recommends the amount of assistance to be released from the NDRF.
• Approval Process: Final approval for fund release is made by a High-Level Committee (HLC) chaired by the Union Home Minister.
• Purpose of Expenditure: Funds from the NDRF can be used only for immediate relief and response measures, such as:
  • Search and rescue operations.
  • Temporary shelter, food, and clothing for affected populations.
  • Restoration of essential services such as power, water, and communication.
  • Medical care, sanitation, and disease control.
  • Assistance for repairing damaged public infrastructure.

Since the NDRF is held in the Public Account of India, the Central Government can access these funds without requiring fresh parliamentary approval each time a disaster occurs, ensuring rapid response.

Relationship with State Disaster Response Fund (SDRF)

Every state in India maintains a State Disaster Response Fund (SDRF) under Section 48 of the Disaster Management Act, 2005. The SDRF serves as the primary state-level fund for immediate relief operations.
However, in cases of large-scale calamities such as major floods, earthquakes, cyclones, or droughts—when the SDRF is insufficient—the state government can request additional support from the NDRF.

This complementary structure ensures a multi-tiered funding system that covers disasters of varying scales and severities.

Key Features and Significance

• Comprehensive Coverage: Supports relief operations for natural disasters such as floods, droughts, cyclones, earthquakes, and landslides, as well as certain human-induced calamities.
• Rapid Availability of Funds: Allows swift financial response through pre-approved procedures and the Public Account mechanism.
• Transparency and Accountability: Subject to audit by the Comptroller and Auditor General (CAG) of India.
• Flexibility: Permits contributions from individuals, corporate entities, and international bodies, encouraging wider participation in national disaster management.

Contemporary Role and Developments

Over the years, the NDRF has played a crucial role in financing relief efforts during major national disasters such as:

• The Uttarakhand floods (2013).
• The Cyclone Fani (2019) in Odisha.
• The Kerala floods (2018).
• The COVID-19 pandemic (2020–21), where funds were utilised for emergency health infrastructure and migrant assistance.

Further reforms recommended by the 15th Finance Commission (2021–26) have sought to enhance flexibility in disaster funding, encourage states to invest more in mitigation, and promote integration of climate resilience and disaster preparedness.

Significance in India’s Disaster Management Framework

The National Disaster Response Fund represents a cornerstone of India’s disaster management strategy, providing the financial backbone for effective emergency response. It enables the Central Government to act promptly in coordination with state agencies, ensuring that relief reaches affected populations without delay.