Wayanad Landslide Relief: Kerala High Court Seeks Centre’s Response on Delay in Funds

Wayanad Landslide Relief: Kerala High Court Seeks Centre’s Response on Delay in Funds

Sub : Polity

Sec: Msc

Why in News

The Kerala High Court (HC) has sought a response from the central government regarding the delay in releasing relief funds from the National Disaster Response Fund (NDRF) and the Prime Minister’s National Relief Fund (PMNRF) for victims of the Wayanad landslide.

National Disaster Response Fund:

Defined under sec 46 of Disaster Management Act, 2005 (DM Act).

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.

Located in the “Public Accounts” of Government of India under “Reserve Funds not bearing interest“.

Comptroller and Auditor General of India (CAG) audits the accounts of NDRF. 

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.

What is it to be used for?

NDRF amount can be spent only towards meeting the expenses for emergency response, relief and rehabilitation. For projects exclusively for the purpose of mitigation, i.e, measures aimed at reducing the risk, impact or effect of a disaster or threatening disaster situation a separate fund called National Disaster Mitigation Fund has to be constituted.

Sources of Financing NDRF:

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

The requirement for funds beyond what is available under the NDRF is met through general budgetary resources.

Currently, a National Calamity Contingency Duty (NCCD) is levied to finance the NDRF and additional budgetary support is provided as and when necessary. A provision also exists in the DM Act,2005 to encourage any person or institution to make a contribution to the NDRF.

Prime Minister’s National Relief Fund (PMNRF)

The Prime Minister’s National Relief Fund (PMNRF) was established in 1948 by Prime Minister Jawaharlal Nehru to provide assistance to displaced persons following the partition of India. Over the years, the fund’s scope has expanded to support victims of both natural and man-made disasters.

The PMNRF is primarily used to offer relief to those affected by:

Natural disasters: Floods, cyclones, earthquakes, etc.

Man-made disasters: Major accidents, acid attacks, riots, and other crises.

Funding and Administration

The fund is made up entirely of public contributions and does not receive any government budgetary allocations.

The corpus is invested in fixed deposits with banks, and disbursements are made only with the Prime Minister’s approval.

Donations to the PMNRF are eligible for 100% tax deduction under Section 80G of the Income Tax Act, 1961.