The document discusses the recommendations of the 13th Finance Commission related to disaster management in India. It summarizes the key recommendations, which include merging existing funds into a National and State Disaster Response Fund, allocating funds for mitigation activities and pooled procurement of disaster response equipment, and providing a grant of Rs. 525 crores for capacity building activities like developing disaster management plans. Guidelines were issued by the Ministry of Finance and Home Affairs on the constitution and administration of the National and State Disaster Response Funds based on the 13th Finance Commission recommendations.

1. SUNIL KOHLI
INDIAN DEFENCE ACCOUNTS SERVICE
JOINT SECRETARY AND FINANCIAL ADVISER
NATIONAL DISASTER MANAGEMENT AUTHORITY,
MINISTRY OF HOME AFFAIRS,
INDIA
1

2. NDMA: ROAD AHEAD
• 13TH FINANCE COMMISSION
RECOMMENDATIONS
• 11TH PLAN DOCUMENT
• 12TH PLAN
22
TALK TOPIC

3. NDMA: ROAD AHEAD
Implications and Action Plan
on
13th Finance Commission Report
3

4. Outline
• Terms of Reference to 13th Finance
Commission on DM
• Review of Existing System
• Existing System & Disaster Management Act
• Recommendations
• Action Plan for Implementation
4

5. Terms of Reference to 13th Finance
Commission on DM
• ‘…review the present arrangements as regards
financing of disaster management with
reference to the National Calamity Contingency
Fund and the Calamity Relief Fund and the
funds envisaged in the Disaster Management
Act, 2005’
5

6. Review of Existing System
Current schemes of CRF and NCCF have
served their purpose ( Para 11.61)
Since the objective of CRF is to meet
expenditure on relief only, therefore size of it
is decided determined on the basis of past
expenditure of the states on calamity (Para
11.62)
6

7. Existing System and Disaster
Management Act
The Act specifies separate funds for response
and Mitigation ( Para 11.67)
The Act provides for clear administrative
structures from the central to the district level
in terms of disaster management authorities
and executive committees (para 11.68)
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8. Recommendations
Financing Arrangements
Mitigation Reserve
Funds for Pooled Procurement
Administrative Mechanism
Capacity Building
List of Natural Calamities
Risk Transfer and Insurance
Revamping Fire & Emergency Services
8

9. Disaster Mitigation
 Mitigation and reconstruction activities to be kept out
of the schemes funded through FC grants and be met
out of overall development plan funds of the Centre
and the states (Para 11.83)
–Other Salient Points of Recommendation
Funding for existing/ current mitigation schemes left to
be decided by NDMA and Planning Commission
9

10. Funds for Pooled Procurement
National Inventory of Equipment and Material
for providing immediate relief
Grant of Rs. 250 Crores in form of revolving
fund to NDRF (Para 11.103)
• Other Salient Points of Recommendation
Cost or rent if items can be reused, to be
booked to the overall cost of relief operations
incurred by the concerned state government and
inventory replenished on regular basis
10

11. Funds for Pooled Procurement
• Action Plan
 Recasting of items
 Operative Mechanism
Fixation of rent
 Revolving Fund ?
 CNE for procurement
 Notification of scheme for National Disaster Response
Reserve
Concept
Capabilities
Flexibility
11

12. Administrative Mechanism
 The administrative mechanism for disaster relief to be
as prescribed under the DM Act, i.e., the NDMA/NEC
at the Centre and the SDMA/SEC at the state level
 Financial matters to be dealt with by the Ministry of
Finance as per the existing practice (Para 11.105 and
11.106)
 Operation of NDRF under overall direction of
NDMA
 JS(M)/ Director (M) to be part of Impact
Assessment Committee
 Hon’ble VC to be part of HLEC
12

13. List of Natural Calamites
The list of disasters to be covered under the
scheme financed through FC grants to remain as
it exists currently ( Para 11.100)
• However, manmade disasters of high-intensity
may be considered for NDRF funding once
norms have been stipulated and requisite
additional allocations made to the NDRF (Para
11.100)
13

14. Risk Transfer and Insurance
• A premium based insurance scheme to
cover calamities would not be viable (Para
11.71)
• At present juncture, insurance schemes do
not provide an adequate alternative to
government funding for disaster relief (
Para 11.73)
14

15. 1
5
ISSUES AND GUIDELINES
•NDRF Notification
•Classification of 13th FC Grant
•Disaster Response Fund
•Guidelines for National Disaster Response Fund (NDRF)
•Guidelines for State Disaster Response Fund (SDRF)
•Capacity Building
•Guidelines of Capacity Building for Disaster Relief
• Revamping Fire & Emergency Services
•Guidelines of Local Bodies with Utilisation Certificate

16. 1
6
GUIDELINES
• NDRF Notification
•Guidelines for National Disaster Response Fund
(NDRF)
•Guidelines for State Disaster Response Fund (SDRF)
•Guidelines of Capacity Building for Disaster Relief
•Guidelines of Local Bodies with Utilisation
Certificate
•Classification of 13th FC grant
• Guidelines are also accessible on the website of Ministry of Finance:
•http://finmin.nic.in/TFC/guidelines.asp

17. Financing Arrangements
(Para 11.75-11.82)
• Recommendations
The existing NCCF to be merged into the NDRF
(Para 11.78)
Past trends of Outflows to be the basis for
appropriations. Alternate source of financing in lieu
of cess to be identified ( para 11.78)
No action taken as yet
The existing CRF to be merged into SDRF.
Merger to ensure continuity in the existing schemes
of relief financing
17

18. Financing Arrangements
(Para 11.75-11.82)
• Recommendations
Aggregate size of all SDRF as Rs. 33,581 Crores
(Para 11.92)
Provisions relating to the DDRF in the DM Act may
be reviewed and setting up of these funds left to the
discretion of the states (Para 11.96)
Prescribed accounting norms to be adhered to for
the continuance of central assistance to the SDRFs
(Para 11.95).
18

19. Financing Arrangements
(Para 11.75-11.82)
• Recommendations
SDRFs should be funded by Centre and State
Governments in a ratio of 75:25 for general category
states and in a ratio of 90:10 for special category
states (Para 11.82)
NDRF may be operated by The National Executive
Committee as provided in the act, under overall
directions of the NDMA (Para 11.105)
Financial matters to be dealt by Ministry of Finance
under overall structure mandated by DM Act ( Para
11.106)
19

20. Financing Arrangements
(Para 11.75-11.82)
• Recommendations
Notification of the Scheme by the Min of Finance
Guidelines to be prepared by the MHA as per the
recommendations of the 13FC
 NDMA vide DO No 20019/218/09-10 dated
13/4/10 conveyed its comments on above
draft guidelines regarding constitution and
administration of NDRF/SDRF as sent by
DM division of MHA
20

21. NDRF
NOTIFICATION
27.09.2010
2
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22. Classification
of Grant in
Aid
2
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23. NDRF
ORDERS
2
3Operational Guidelines for constitution and Administration of national
Disaster Response Fund (NDRF)

24. Operational Guidelines for constitution and Administration
of National Disaster Response Fund (NDRF)
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25. Operational Guidelines for constitution and Administration
of National Disaster Response Fund (NDRF)
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26. Operational Guidelines for constitution and Administration
of National Disaster Response Fund (NDRF)
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27. Operational Guidelines for constitution and Administration
of National Disaster Response Fund (NDRF)
2
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28. Operational Guidelines for constitution and Administration
of National Disaster Response Fund (NDRF)
2
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29. Operational Guidelines for constitution and Administration
of National Disaster Response Fund (NDRF)
2
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30. Operational Guidelines for constitution and Administration
of National Disaster Response Fund (NDRF)
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31. Operational Guidelines for constitution and Administration
of National Disaster Response Fund (NDRF)
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32. Operational Guidelines for constitution and Administration
of National Disaster Response Fund (NDRF)
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33. SDRF
ORDERS
3
3Operational Guidelines for constitution and Administration of national
Disaster Response Fund (NDRF)

34. Operational Guidelines for constitution and
Administration of State Disaster Response Fund
(SDRF)
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35. Operational Guidelines for constitution and
Administration of State Disaster Response Fund
(SDRF)
35

36. Operational Guidelines for constitution and
Administration of State Disaster Response Fund
(SDRF)
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37. Operational Guidelines for constitution and
Administration of State Disaster Response Fund
(SDRF)
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38. Operational Guidelines for constitution and
Administration of State Disaster Response Fund
(SDRF)
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39. Operational Guidelines for constitution and
Administration of State Disaster Response Fund
(SDRF)
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40. Operational Guidelines for constitution and
Administration of State Disaster Response Fund
(SDRF)
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41. Operational Guidelines for constitution and
Administration of State Disaster Response Fund
(SDRF)
41

42. Operational Guidelines for constitution and
Administration of State Disaster Response Fund
(SDRF)
42

43. Operational Guidelines for constitution and
Administration of State Disaster Response Fund
(SDRF)
43

44. Capacity Building
Guidelines of Capacity Building for
Disaster Relief
4
4

45. Capacity Building
• Recommendations
 An additional grant of Rs. 525 Crores has been
provided for capacity building ( Para 11.102)
 Amount to be used for preparation of State and
District level Disaster Management Plans and for
building capacity
 NDMA vide Do No 1-15/2010-P dated 31/3/10
conveyed its above draft guidelines to MHA for
issue of guidelines to states and for sending it
further to department of Expenditure for release
of said allocation.
45

46. Capacity Building
• Issue of Guidelines for release and utilisation
of grant-in-aid for Capacity Building for
Disaster Response.
• Guidelines issued vide No. F 23(32) FCD/2010
Dated 5th October, 2010 by Ministry of
Finance, Department of Expenditure, Finance
Commission Division
46

47. Capacity Building
• Scheme for release and utilisation of grant-in-aid
recommended by the Thirteenth Finance Commission
(FC-XIII) for Capacity Building for Disaster Response
• 1.FC-XIII has observed that effective disaster response requires trained
manpower to deal with complex situations where effective and speedy
handling reduces the impact of a disaster on human life and property.
Therefore it is necessary to continuously undertake measures to build capacity
amongst those responsible for disaster response and augmenting public
awareness. Accordingly, FC-XIII has recommended a grant of Rs. 525 crore
for building capacity within the administrative machinery for better handling
of disaster response and for preparation of district and state level disaster
management plans as envisaged under the Disaster Management Act of 2005
(DM Act).
47

48. Capacity Building
• Scheme for release and utilisation of grant-in-aid
recommended by the Thirteenth Finance Commission
(FC-XIII) for Capacity Building for Disaster Response
• 2. This grant will be released in five equal annual instalments, in accordance
with the State wise allocation in Annex 11.3 of FC-XIII’s Report-Vol.2,
reproduced as Annex-I to these guidelines.
• 3. Under section 20 of the DM Act, every state is required to constitute a
State Executive Committee (SEC) to coordinate action in accordance with the
guidelines laid down by the State Disaster Management Authority (SDMA).
The SEC is chaired by the Chief Secretary to the State Government and has
as its members four Secretaries of the State Government.
• Each State may use the grant amount on activities approved by the SEC in a
perspective plan covering the period 2010-15 and action plans for each
financial year.
48

49. Capacity Building
• Scheme for release and utilisation of grant-in-aid
recommended by the Thirteenth Finance Commission
(FC-XIII) for Capacity Building for Disaster Response
• 4. These plans would, inter alia, provide essentially for training/capacity
building of stakeholders and functionaries in States, preparation of Disaster
Management plans based on hazard, risk and vulnerability analysis, and setting
up/ strengthening of Emergency Operation Centres (EOCs) in States.
• 5. Conditions for release of grant:
• (i) The grant will be released in one instalment by May every year.
• (ii) The grant for the year 2010-11would be released unconditionally.
• (iii) Grants from 2011-12 onwards would be released on receipt of SEC
approved working plans and utilisation of previous instalment released as per
format at Annex-II (MHA to provide format).
49

50. Capacity Building
• 5. Conditions for release of grant:
• (iv) States would send the SEC approved perspective plan for 2010-15 to the
Ministry of Finance and Ministry of Home Affairs, by March 2011, and
annual plans for each year thereafter before the end of each financial year.
• (v) This grant will supplement the existing scheme/budgetary allocation of
the Central and State Government as well as any externally aided project for
capacity building on disaster management.
• (vi) This grant is not to be used for land acquisition or construction activity.
• (vii) No permanent liability should be created through the use of this grant.
In case there is any such liability extending beyond March 31, 2015, the State
Government concerned would be liable to provide for it from its own
resources.
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51. Capacity Building
• 6. This grant would be released by Ministry of Finance (Department of
Expenditure) from Demand no.35.
• 7. Utilisation of the grant at the State level would be monitored by the SEC.
At the centre a review committee, headed by Secretary in charge of
disaster management, Ministry of Home Affairs, will be constituted to
review the release and utilisation of the grant. The Committee will
include a representative from the Ministry of Finance (Department of
Expenditure). The Committee shall meet at least once in a year.
• 8. The Comptroller and Auditor General of India would undertake audit of
expenditure of this grant every year. The State Government shall send a copy
of the audit report of the Comptroller and Auditor General of India to the
Ministry of Finance and to the Ministry of Home Affairs.
• ROLE OF NDMA?
• NDMA to put in place monitoring mechanism?
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52. Grant for Capacity Building for Disaster Response
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53. Revamping Fire & Emergency
Services
Guidelines of Local Bodies
with Utilisation Certificate
5
3

54. Revamping Fire & Emergency Services
• All municipal corporations with a population of
more than 1 million (2001 census) must put in
place a fire hazard response and mitigation plan
for their respective jurisdictions. Publication of
these plans in the respective State Government
gazettes will demonstrate compliance with this
condition (Para 10.160(ix)
54

55. Revamping Fire & Emergency Services
• NDMA argued for allocation of grants worth
Rs. 7,000 crore to the states to meet these
shortages.
• We accept the need to restructure fire and
emergency services across the urban and rural
areas of the country and recognize that the
stipulation in
• Para 10.161(ix) is merely a first step.
55

56. Revamping Fire & Emergency Services
• A portion of the grants provided by us to the
urban local bodies be spent on revamping of the
fire services within their respective jurisdictions.
These bodies could provide financial support to
the State Fire Services Department towards this
objective. In this process,
• They could draw upon the expertise of state
agencies and the National Disaster
Management Agency, as required.
56

57. Guidelines of Local Bodies with
Utilisation Certificate
• Guidelines released vide No. 12(2) FCD/2010 Dated 23rd
September, 2010 by Ministry of Finance, Department of
Expenditure, Finance Commission Division
• Recommendations of the Commission contained in paras
10.141 to 10.167 of the report of FC XIII (Vol. I).
• The first tranche of the grant has been released on the 14th July,
2010 as provided for in the report of the Thirteenth Finance
Commission.
• This was released pending issue of guidelines on the above grant
and State Government were advised to utilise the first instalment
for the year 2010-11 in conformity with the recommendations of
the Commission contained in paras 10.141 to 10.167 of the
report of FC XIII (Vol. I).
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58. Guidelines of Local Bodies with
Utilisation Certificate
• 6.4.10 Service Delivery Benchmarks:
• (i) State Governments must gradually put in place standards for
delivery of all essential services provided by local bodies.
• For a start, State Governments must notify or cause all the
Municipal Corporations and Municipalities to notify by the end
of a fiscal year (31 March) the service standards for four
service sectors: water supply, sewerage, storm water
drainage, and solid waste management proposed to be
achieved by them by the end of the succeeding fiscal year.
• This could be in the form of a declaration of a minimum level
of service for the indicators mentioned against each of these
four service sectors in the ‘Handbook on Service level
Benchmarks’ published by the Ministry of Urban Development.
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59. Guidelines of Local Bodies with
Utilisation Certificate
• 6.4.10 Service Delivery Benchmarks:
• (ii) For example, a State Government may notify before 31
March 2011 that by 31 March 2012, all Municipalities and
Municipal Corporations in the State will provide a specified
minimum level of service for each of the indicators for the four
service sectors of water supply, sewerage, storm water drainage
and solid waste management.
• These levels may be different for different Municipalities.
• The fact of publication of a notification in the State
Government gazette in this regard will demonstrate compliance
with this condition.
59

60. Guidelines of Local Bodies with
Utilisation Certificate
• 6.4.10 Service Delivery Benchmarks:
• 6.4.11. All Municipal Corporations with a
population of more than 1 million (2001 census)
must put in place a fire hazard response and
mitigation plan for their respective
jurisdictions.
• Publication of these plans in the respective
State Government Gazettes will demonstrate
compliance with this condition.
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61. Guidelines of Local Bodies with
Utilisation Certificate
• Annex – VI
• INFORMATION REGARDING COMPLIANCE OF CONDITIONS FOR DRAWAL OF
PERFORMANCE BASED GRANT FOR LOCAL BODIES UNDER THE THIRTEENTH
FINANCE COMMISSION (2011-12 TO 2014-15) - AS ON 31 MARCH _______
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Conditions Corresponding paras
in guidelines
Status of Compliance
(Documents/
Certificates to be
enclosed wherever
required in support of
the compliance
Disaster Management Para 6.4.11

62. Our Comments
• NDMA has not been assigned any role in
formation and Operationalisation of
NDRF/SDRF.
62

63. Pending Issues
• Establishment of National Disaster Response
Fund
– Rs 250 Cr, as suggested in 13 FC to NDRF for maintaining
disaster response reserve, and as provided under Ministry of
Finance Grant No 35, under Major Head 3601,Grant -in-Aid
for state Govt. is to be allocated to NDMA/NDRF under
relevant head.
• Establishment of National Disaster Mitigation
Fund
– Section 47 of Disaster Management Act seeks to provide for
constitution of National Disaster Mitigation Fund.
63

64. Pending Issues
• Declaration of Capacity Building for Disaster
Resilience” as Separate Sector for Planning
Purpose: 12th Plan Point
• Capacity Building for Disaster Management
should be considered as a separate sector by
Planning Commission and Finance Ministry to
give proper impetus and due thrust on DM.
• This will enable Budget allocation for DM
activities at National and State level.
64

65. Pending Issues
• Declaration of NDMA as a Focal Point for
Disaster Management
65