IAS Gyan

Daily News Analysis

National Disaster Response Fund

21st December, 2021 Polity


  • funds are being provided with an extra Rs. 15,000 crore for emergency COVID-19 response from national disaster response fund.


  • It is a fund managed by the Central Government for meeting the expenses for emergency response, relief and rehabilitation due to any threatening disaster situation or disaster. 
  • Constituted to supplement the funds of the State Disaster Response Funds (SDRF) of the states to facilitate immediate relief in case of calamities of a severe nature.
  • National Calamity Contingency Fund (NCCF) was renamed as National Disaster Response Fund (NDRF) with the enactment of the Disaster Management Act in 2005.

Calamities covered

  • The NDRF is placed in the “Public Account” of GOI under “reserve funds not bearing interest”.
  • Natural calamities such as earthquakes, cyclones, drought, fire, tsunami, floods, landslide, hailstorm, avalanche, pest attack and cloud burst deemed to be of severe nature by the Indian Government and for which the state government requires funds in excess of the balance available with its SDRF.


  • It is Financed through the levy of a cess on certain items, chargeable to excise and customs duty, and approved annually through the Finance Bill.