State Disaster Response Fund (SDRF)

The State Disaster Response Fund (SDRF) is the primary fund constituted at the state level in India to meet the expenditure for providing immediate relief to victims of notified natural disasters. It serves as the main financial mechanism for disaster management at the subnational level and is governed by the provisions of the Disaster Management Act, 2005. The SDRF functions as a joint contribution fund of both the Central and State Governments, designed to ensure timely availability of resources for emergency response and relief operations.

Background and Legal Framework

The establishment of the State Disaster Response Fund is rooted in the policy shift towards institutionalising disaster management in India. Before the enactment of the Disaster Management Act, 2005, relief expenditure for natural calamities was met through the Calamity Relief Fund (CRF). In 2010, the CRF was replaced by the SDRF following recommendations of the Thirteenth Finance Commission, thereby aligning disaster response with the new legal and institutional framework under the National Disaster Management Act.
The SDRF is constituted under Section 48(1)(a) of the Disaster Management Act, 2005. It operates under the overall supervision of the State Executive Committee (SEC) headed by the Chief Secretary of the respective state. The Department of Disaster Management in each state acts as the nodal department for the fund’s administration.

Objectives and Purpose

The SDRF is designed to provide immediate financial assistance for relief measures in the aftermath of disasters, particularly for those classified by the Central Government as “notified natural disasters.” Its main objectives include:

• Providing emergency relief to individuals and communities affected by natural calamities.
• Ensuring quick mobilisation of funds for rescue, evacuation, and rehabilitation.
• Supporting restoration of critical infrastructure and essential services in disaster-affected areas.
• Acting as a financial buffer before additional central assistance is provided through the National Disaster Response Fund (NDRF).

The fund is primarily intended for relief and response, not for long-term reconstruction or mitigation activities, which are covered under separate development and disaster risk reduction programmes.

Sources and Pattern of Funding

The SDRF is financed through contributions from both the Central and State Governments in a defined ratio, as recommended periodically by the Finance Commission.

• For General Category States, the current funding pattern is 75% Central Government and 25% State Government.
• For Special Category States (including the North-Eastern states, Himachal Pradesh, Uttarakhand, and Jammu & Kashmir), the ratio is 90% Central Government and 10% State Government.

These funds are released in two equal instalments each year—usually in June and December—and credited to the public account of the state government under a separate head.
The Central Government’s share is released by the Ministry of Home Affairs (MHA) on the recommendation of the State Government and after due verification by the Disaster Management Division.

Utilisation and Eligible Expenditure

The SDRF is utilised for relief expenditure arising out of disasters that are notified by the Government of India under the approved list of calamities. These include:

• Cyclone
• Drought
• Earthquake
• Fire
• Flood
• Hailstorm
• Landslide
• Avalanche
• Cloudburst
• Pest attack
• Frost and cold wave

Additionally, with the approval of the Central Government, the SDRF can be used for relief arising from locally declared disasters of severe nature.
Permitted categories of expenditure under SDRF include:

• Immediate relief for affected populations, such as food, water, shelter, and medical aid.
• Ex-gratia payments to families of deceased persons and compensation for loss of property, crops, or livestock.
• Restoration of essential public utilities, such as electricity, water supply, and communication networks.
• Evacuation, search, and rescue operations, including temporary accommodation for displaced persons.
• Clearing of debris and temporary repair of damaged public infrastructure.

Expenditure incurred from the fund must conform to the norms approved by the Government of India and laid down by the Finance Commission.

Administration and Monitoring

The SDRF is managed by the State Government, and the State Executive Committee (SEC) exercises administrative control. Each state maintains a separate bank account for the SDRF, ensuring transparency and accountability in fund management.
Key administrative features include:

• Budgetary Head: The fund operates under a distinct budget head in the state’s public account.
• Treasury Control: Withdrawals are made with authorisation from the state’s Finance Department.
• Auditing: Utilisation of the SDRF is subject to audit by the Accountant General (AG) of the state.
• Reporting: States must submit utilisation certificates and progress reports to the Ministry of Home Affairs for release of subsequent instalments.
• Advisory Role: The State Disaster Management Authority (SDMA) provides policy direction, while the SEC ensures operational implementation.

Relationship with the National Disaster Response Fund (NDRF)

The SDRF serves as the first line of financial defence against disasters at the state level. When the scale of a disaster exceeds the coping capacity of the state, additional assistance is sought from the National Disaster Response Fund (NDRF).
The process involves:

1. State Memorandum Submission: The affected state submits a detailed memorandum to the Central Government.
2. Assessment by the Inter-Ministerial Central Team (IMCT): A central team evaluates the damage and relief needs.
3. Approval by High-Level Committee (HLC): Based on recommendations, funds are sanctioned from the NDRF.

This two-tier structure ensures that relief operations are not delayed while maintaining central support for large-scale calamities.

Achievements and Significance

The SDRF has emerged as a critical instrument in strengthening disaster response capacity across Indian states. Key achievements include:

• Timely Relief Delivery: Enabled prompt mobilisation of resources for emergency response.
• Decentralised Preparedness: Empowered states to handle disasters locally without waiting for central aid.
• Enhanced Accountability: Institutionalised fund utilisation and audit mechanisms.
• Integration with Disaster Management Framework: Aligned with the broader National Disaster Management Plan (NDMP) and Sendai Framework for Disaster Risk Reduction.
• Flexibility: Allowed state governments to respond to region-specific disasters through local adaptation mechanisms.

Challenges and Limitations

Despite its effectiveness, the SDRF faces certain operational and administrative challenges:

• Underutilisation of Funds: Delays in fund release or utilisation due to procedural bottlenecks.
• Inadequate Allocation: The fund size may not always match the increasing frequency and intensity of disasters.
• Limited Scope of Coverage: Some disasters of local importance remain outside the notified list.
• Lack of Coordination: Weak coordination among departments during fund deployment.
• Monitoring Gaps: Variations in record-keeping and reporting standards across states.

Reforms and Recent Developments

Recent years have seen several policy initiatives to improve the functioning of SDRFs:

• Digital Monitoring Systems: States are adopting electronic fund tracking and reporting mechanisms.
• Inclusion of New Disasters: Expansion of the notified list to include phenomena such as heatwaves and cold waves.
• Increased Allocation: Finance Commissions have recommended periodic enhancement of the corpus to match evolving disaster risks.
• Integration with Climate Resilience: SDRF expenditure is increasingly linked with sustainable recovery and climate adaptation strategies.

Importance in India’s Disaster Management Framework

The SDRF constitutes a vital component of India’s multi-tiered disaster management financing structure. It ensures that states possess adequate resources to respond quickly and effectively to emergencies. The fund’s emphasis on decentralisation, transparency, and shared financial responsibility aligns with the constitutional mandate of cooperative federalism.