Tamil Nadu: Issues Around Disaster Relief Funds from Centre

April 5, 2024

In December 2023, Tamil Nadu was severely affected by Cyclone Michaung and subsequent floods. The state has filed a suit at the Supreme Court, claiming that the Centre is withholding national disaster relief funds necessary to aid the affected areas.

The Tamil Nadu government is seeking Rs 37,902 crores in assistance for the damage caused by the cyclone and an additional Rs 2,000 crore as an interim measure for relief operations.

Disaster Relief Funds in India

In India, funds for disaster relief are available to states from two sources: the State Disaster Relief Fund (SDRF) and the National Disaster Relief Fund (NDRF). These funds were created with the enactment of the Disaster Management Act, 2005 (DMA), following the devastating tsunami of December 2004.

The NDRF covers calamities such as cyclones, droughts, and floods that are considered to be of severe nature by the Government of India and require additional funding beyond what is available in the SDRF. Please note that SDRF is funded by the Centre and State governments in a 75:25 ratio for general category states and 90:10 for special category states (North-Eastern states, Sikkim, Uttarakhand, and Himachal Pradesh).

Process for Releasing NDRF Funds

As per the January 2022 Operational Guidelines for Constitution and Administration of the NDRF, Rs 54,770 crores has been earmarked for the fund from the fiscal year 2021-22 until 2025-26.

When a state faces a severe calamity and lacks adequate funds in the SDRF, it can submit a request for additional assistance from the NDRF. The Ministry of Home Affairs (MHA) or the Ministry of Agriculture will assess the situation and determine if there is a case for additional assistance.

The process involves:

The MHA constituting an Inter-Ministerial Central Team (IMCT) to visit the affected areas and determine the need for additional funds.
The IMCT submitting its recommendation to a sub-committee of the National Executive Committee.
A high-level committee chaired by the Home Minister, comprising the Ministers for Agriculture and Finance, and the NITI Aayog vice-chairman, signing off on the release of NDRF funds.

Tamil Nadu’s Claim and Similar Pleas from Other States

Tamil Nadu claims that despite completing all the necessary steps, including the submission of recommendations by the IMCT and the sub-committee of the National Executive Committee, the MHA is yet to convene a meeting and release the funds. The state argues that the Centre’s inaction violates citizens’ rights to equality and life with dignity (Articles 14 and 21 of the Constitution).

Tamil Nadu’s suit was filed shortly after Karnataka filed a similar petition on March 23, seeking the release of Rs 18,171 crores in NDRF funds for drought relief. Karnataka claims that 196 of its 236 taluks have been classified as “severely drought affected” in 2023, with another 27 classified as “moderately drought affected.”

Other opposition-ruled states, such as Kerala, Telangana, and Punjab, have also approached the Supreme Court recently, claiming that their respective Governors have been withholding assent to bills passed by the state legislatures or slashing the states’ borrowing power amidst financial crises.

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