Centre releases Rs 7,532 crore to states to deal with natural disasters

The decision was made as part of the central government's initiative to help state governments have enough funds in their SDRF in the event of excessive rains and natural disasters.

The Union Finance Ministry on July 12 said it has released Rs 7,532 crore to 22 state governments for their State Disaster Response Funds (SDRF).

The decision was made as part of the central government's initiative to help state governments have enough funds in their SDRF in the event of excessive rains and natural disasters.

Due to the heavy rainfall across the country, revised guidelines have been implemented, enabling the prompt distribution of funds to states without the need for them to submit utilization certificates for the previous year's allocation, the ministry said in a statement.

The Central Government had previously released Rs 34,140 crore prior to the current release. The total amount of Central share allotted to State Governments for State Disaster Response Funds (SDRF) has now reached Rs 42,366 crore, according to the current notification.

Based on the 15th Finance Commission recommendations, the Central Government has allocated Rs 1,28,122.40 crore for SDRF for the years 2021-22 to 2025-26. Out of this amount, the Central Government’s share is Rs 98,080.80 crore.

What is State Disaster Response Fund (SDRF)

The State Disaster Response Fund (SDRF) is the fund used by state governments to respond to recognised disasters. The Central Government typically contributes 75 percent of the SDRF to general states and 90 percent to North-East and Himalayan states.

The annual contribution from the Central Government is paid in two equal installments, as recommended by the Finance Commission. Funds are released upon the filing of a Utilisation Certificate for the preceding instalment and a report from the State Government summarising the SDRF operations. These conditions, however, were relaxed for the present grant disbursement due to the urgency of the situation.

The SDRF is specifically designed to meet the immediate needs of people affected by disasters such as cyclones, droughts, earthquakes, fires, floods, tsunamis, hailstorms, landslides, avalanches, cloud bursts, pest attacks, frost, and cold waves.

The fund is allocated to each state based on factors including past expenditure, area, population, and disaster risk index.