Hello,

The Central Government has permitted the contributions from any person or institution in the National Disaster Response Fund (NDRF) as per Section 46(1)(b) of the Disaster Management (DM) Act, 2005. It is placed in the Public Account of Government of India under reserve funds not bearing interest meaning,these funds do not belong to the government and have to be paid back at some time.
Expenditures from it are not required to be approved by the Parliament.

Important Points :

• It is managed by the Central Government for meeting the expenses for emergency response, relief and rehabilitation due to any threatening disaster situation or disaster.

• It supplements the State Disaster Response Fund (SDRF) in case of a disaster of severe nature, provided adequate funds are not available in the SDRF.

• The Centre contributes 75% of the SDRF allocation for general category States and Union Territories, and 90% for special category States/UTs

• Financed through the levy of a cess on certain items, chargeable to excise and customs duty, and approved annually through the Finance Bill, currently a National Calamity Contingent Duty (NCCD) is levied to finance the NDRF and additional budgetary support whenever needed.

• The Ministry of Agriculture and Farmer Welfare monitors relief activities for calamities associated with drought, hailstorms, pest attacks and cold wave/frost while rest of the natural calamities are monitored by the Ministry of Home Affairs (MHA).

Hope it helps
Thank you !!!!