Himachal Pradesh, battered by heavy monsoon in 2023, appealed to India’s Prime Minister to declare the devastating aftermath as a National Disaster. The relentless rains led to severe losses amounting to Rs 10,000 crore, and around 418 fatalities due to rain-related incidents. In such severe calamity scenarios, extra Central assistance is extended from the National Disaster Response Fund.
Understanding Assistance during Natural Disasters
Interestingly, no official category of “National Disasters” exists. Such extreme events are managed under the Disaster Management Act 2005. The act describes a disaster as a catastrophic event originating from natural or human agents, accidents, or negligence leading to significant loss of life, human suffering, property destruction, or environmental degradation. Such occurrences overwhelm the affected community’s coping capacity.
The Disaster Management Act 2005 led to the establishment of the National Disaster Management Authority (NDMA) with the Prime Minister at the helm, and respective State Disaster Management Authorities (SDMAs) directed by their Chief Ministers. It also gave birth to the National Disaster Response Force, responsible for relief and rescue work.
The Role of Disaster Relief Funds: NDRF and SDRF
The National Disaster Relief Fund (NDRF) and the State Disaster Response Fund (SDRF) play critical roles in disaster management. The NDRF supplements the SDRF in situations of severe disasters if the latter lacks adequate funds. The Centre contributes 75% to the SDRF in regular states and 90% in northeastern and Himalayan states. These funds primarily support state governments in responding to notified catastrophes.
The SDRF is mainly used for providing immediate relief to victims of notified calamities like cyclones, droughts, earthquakes, floods, tsunamis, hailstorms, landslides, avalanches, cloud bursts, pest attacks, etc. While the state government is primarily responsible for rescue, relief, and rehabilitation, the Centre supplements those actions.
Severe Calamity: A Definition and Procedure
A severe calamity refers to a significant disaster causing widespread damage, loss of life, and disruption. When such an event is declared severe, specific disaster relief and financial assistance procedures are triggered. The process begins with the state government’s memorandum detailing the damage extent and fund requirements. An inter-ministerial central team assesses the situation, followed by committee evaluations and approvals from a High-Level Committee. If SDRF resources are inadequate, additional NDRF assistance is considered.
The Role of Financial Support and the Finance Commission
Both SDRF and NDRF funds receive allocation from the government’s budget. In situations requiring loan relief, provisions might include relief in loan repayment or offering new loans on soft terms. The Finance Commission proposes funds for immediate relief. Central contributions for disaster relief are released in two equal installments upon receiving utilization certificates and state government reports on conducted activities.