Centre allows Kerala to use SDRF Funds for Wayanad Rehabilitation

Context: The Union government has permitted Kerala to utilise ₹120 crore from SDRF for rehabilitation measures for the Wayanad landslide survivors.

About Disaster Response Funds

National Disaster Response Fund (NDRF)

• It is defined under Section 46 of Disaster Management Act, 2005 (DM Act).
• It is a fund managed by the Central Government to meet the expenses for emergency response, relief and rehabilitation due to any threatening disaster situation or disaster.
• NDRF amount can be spent only towards meeting the expenses for emergency response, relief and rehabilitation.
• NDRF is a Public Account. It is financed through various means:
  • Cess on certain items: A cess is levied on certain items and is chargeable to excise and customs duty.
  • Budgetary support: NDRF also receives additional budgetary support.
  • National Calamity Contingent Duty (NCCD): It is a duty of excise and customs levied on certain goods, including tobacco products.
• The National Executive Committee (NEC) of the National Disaster Management Authority takes decisions on the expenses from NDRF.

State Disaster Response Fund (SDRF)

• SDRF is established under Section 48 (1) of the DM Act.
• The Central Government contributes to the SDRF as follows:
  • General category States/UTs: 75%
  • Special category States/UTs: 90%
• SDRF covers the following disasters: Cyclones, droughts, earthquakes, fires, floods, tsunamis, hailstorms, landslides, avalanches, cloudbursts, pest attacks and frost and cold waves.
• Local Disaster: A State Government can use up to 10% of the funds available under the SDRF to provide immediate relief to the victims of natural disasters that they consider to be ‘disasters’ within the local context in the State and which are not included in the notified list of disasters of the Ministry of Home Affairs.

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