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- Under Disaster Management Act 2005, a financial mechanism has been set up by way of National Disaster Response Fund (NDRF) at national level and State Disaster Response Fund (SDRF) at state level to meet rescue and relief expenditure during any notified disaster.
- SDRF has been constituted in each State in which Centre, so far, had been contributing 75% for General Category States and 90% for Special Category States of hilly regions every year. Now, Central government will contribute 90% and all States will contribute 10% to the SDRF.
- SDRF is resource available to States to meet expenses of relief operations of immediate nature, for range of specified disasters.
- At any point, State Government has fair amount of funds available under SDRF.
- In case of any natural calamity beyond coping capacity of State, additional financial assistance is provided by Central Government from NDRF as per norms in which 100% funding is by Central Government.