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National Calamity Contingency Fund (NCCF)

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The National Calamity Contingency Fund (NCCF) is a dedicated fund maintained by the Government of India for supplementing the disaster relief efforts of various state governments and is operated under the broad framework laid down by the 11th Finance Commission. It has a core corpus of Rs. 500 crore and is replenished through the National Calamity Contingent Duty imposed on cigarettes, pan masala, beedis, other tobacco products and cellular phones.

NCCF targets immediate relief measures and excludes measures for mitigation or post-calamity reconstruction. NCCF exist for supplementing the calamity relief funds (CRFs) operated by the States when the amount in the latter is insufficient to meet the disaster relief measures.

NCCF has been merged with National Disaster Response Fund (NDRF) with effect from 1 April 2010 and has ceased to exist.


Features of NCCF

Its major features are:


Background

The Calamity Relief Funds (CRF) at the state levels were set up based on the recommendation of Finance Commission (FC)-IX which submitted its report in 1990. Prior to CRF, the Finance Commissions set apart specific amounts under the 'margin money' scheme (which envisaged setting apart specific amounts by states in order to meet the expenditure on relief measures) recommended by the FC-II to meet expenditures on relief measures.

It was FC-X (submitted its report in 1995) which recommended the setting up of a National Fund for Calamity Relief (NFCR) with Rs.700 crore to assist any state affected by a calamity of rare severity. It suggested that such calamities would have to be adjudged on a case-by-case basis. Management of this fund was to be under a National Calamity Relief Committee chaired by the Union Minister for Agriculture. Both the Centre and the states would contribute to this fund (75:25).

FC-XI (submitted its report in 2000) reviewed the functioning of the National Fund for Calamity Relief and found that not only had the entire corpus of the fund been exhausted in three years, but also that it had failed to make adequate funds available for meeting the requirements of calamities of rare severity. FC-XI recommended the setting up of a National Calamity Contingency Fund (NCCF) with an initial corpus of Rs. 500 crore to be contributed by the Center, which was to be recouped through the levy of a special surcharge on central taxes.

FC-XII (Submitted in 2004) recommended continuation of the scheme of NCCF in its existing form.


Present Status

With the enactment of the Disaster Management Act in 2005 and consequent changes in the design and structure of disaster management, the FC-XIII (submitted its report in 2009) recommended the merger and transfer of NCCF balances, as on 31 March 2010, to the National Disaster Response Fund (NDRF) which was accepted and notified by the Union Government.

NCCF was renamed as National Disaster Response Fund (NDRF) on 28 September 2010. The NDRF is financed through the levy of a cess on certain items, chargeable to excise and customs duty, and approved annually through the Finance Bill. The requirement for funds beyond what is available under the NDRF is met through general budgetary resources. The revised norms for assistance from NDRF were issued on 8 April 2015 and the guidelines were modified on 30 July 2015.


Also See

References


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