Major Relief and Disaster Management Funds in India: NDRF, SDRF, PMNRF, PM CARES, NDMF & SDMF
Study Material | Disaster Management | Polity & Governance | UPSC & State PCS
India's disaster-financing architecture is often confusing because several funds have similar names but different legal bases, sources of money and purposes. For UPSC, the safest way to understand them is to divide them into three groups:
Response: NDRF + SDRF
Mitigation: NDMF + SDMF
Voluntary relief/emergency assistance: PMNRF + PM CARES
This classification is the foundation of the entire topic.
★ Why This Topic Is Important for UPSC & State PCS
| Examination Area | Relevance |
|---|---|
| Prelims | NDRF, SDRF, NDMF, SDMF, PM CARES, PMNRF |
| GS Paper II | Governance and institutional mechanisms |
| GS Paper III | Disaster and disaster management |
| Economy | Fiscal federalism and disaster financing |
| Essay | Disaster resilience, welfare and governance |
| State PCS | State disaster-response mechanisms |
Exam relevance: ★★★★★
1. State Disaster Response Fund — SDRF
The State Disaster Response Fund (SDRF) is the primary fund available with State Governments for responding to notified disasters.
It is constituted under Section 48(1)(a) of the Disaster Management Act, 2005.
The SDRF is therefore not simply an ad-hoc relief fund; it forms part of India's statutory disaster-management architecture.
Who contributes?
The Centre and states contribute jointly.
| Category | Centre | State |
|---|---|---|
| States generally | 75% | 25% |
| Northeastern & specified Himalayan states | 90% | 10% |
The Ministry of Home Affairs confirms these contribution ratios.
2. National Disaster Response Fund — NDRF
The National Disaster Response Fund (NDRF) is constituted under Section 46 of the Disaster Management Act, 2005.
Its role is different from the SDRF.
When a disaster is of a severe nature and adequate resources are not available in the state's SDRF, the NDRF can supplement the state's resources according to the prescribed procedure.
Who finances NDRF?
Unlike SDRF:
The entire contribution to NDRF comes from the Central Government.
Remember
SDRF = first/primary state-level response fund
NDRF = national fund that supplements SDRF in severe disasters when state resources are inadequate
⚠ Prelims Trap: NDRF Fund vs NDRF Force
This is one of the most important distinctions in this chapter.
NDRF — National Disaster Response Fund
It is a financial mechanism under the Disaster Management Act.
NDRF — National Disaster Response Force
It is a specialised disaster-response force.
Therefore:
Fund ≠ Force
The same abbreviation is used, but they perform completely different functions.
3. State Disaster Mitigation Fund — SDMF
Response and mitigation are not the same.
Response deals with the immediate consequences of a disaster.
Mitigation seeks to reduce the potential impact of disasters before future losses occur.
The State Disaster Mitigation Fund (SDMF) is specifically meant for disaster-risk mitigation.
For the 16th Finance Commission award period, 2026–27 to 2030–31, ₹40,880 crore has been allocated for SDMF.
The Centre's contribution is:
75% for states generally
and
90% for Northeastern and Himalayan states.
4. National Disaster Mitigation Fund — NDMF
The National Disaster Mitigation Fund (NDMF) performs the mitigation function at the national level.
The 16th Finance Commission recommended a ₹79,406-crore National Fund for 2026–27 to 2030–31. Under the current framework, 75% is earmarked for NDRF and up to 25% for NDMF.
This produces an extremely useful conceptual table:
| Level | Response | Mitigation |
|---|---|---|
| National | NDRF | NDMF |
| State | SDRF | SDMF |
Memory trick
R = Response
M = Mitigation
So:
NDRF → National + Response
NDMF → National + Mitigation
SDRF → State + Response
SDMF → State + Mitigation
16th Finance Commission: Latest Disaster-Financing Framework
This section is particularly important because many older UPSC notes online still contain 15th Finance Commission figures.
For 2026–27 to 2030–31, the 16th Finance Commission recommended a total State Disaster Fund allocation of:
₹2,04,401 crore
divided into:
SDRF — ₹1,63,521 crore (80%)
SDMF — ₹40,880 crore (20%)
For the national-level fund, the recommended corpus is:
₹79,406 crore
with 75% earmarked for NDRF and up to 25% for NDMF under the current framework.
UPSC takeaway
The disaster-financing architecture is therefore increasingly broader than merely providing relief after disasters. It also recognises mitigation, preparedness, capacity building and resilience. The 16th Finance Commission specifically recommends preparedness and capacity building under SDMF/NDMF.
5. Prime Minister's National Relief Fund — PMNRF
PMNRF is fundamentally different from NDRF and SDRF.
It was established in January 1948 following an appeal by then Prime Minister Jawaharlal Nehru.
Its original objective was to assist people displaced from Pakistan following Partition. Its role subsequently expanded considerably.
Today, PMNRF resources are primarily used for immediate relief to families affected by:
- floods;
- cyclones;
- earthquakes;
- major accidents; and
- riots.
It can also provide assistance towards specified medical treatment such as heart surgery, kidney transplantation, cancer treatment and treatment of acid-attack victims.
Is PMNRF Created by Parliament?
No.
The PMO explicitly states that:
PMNRF has not been constituted by Parliament.
This is an excellent Prelims trap.
It is recognised as a Trust under the Income Tax Act and is managed by the Prime Minister or delegates for national causes.
Does PMNRF Receive Budgetary Support?
No.
It consists entirely of public contributions and does not receive budgetary support.
PMNRF accepts voluntary donations from individuals and institutions. The official PMO page also states that contributions from government budgetary sources or PSU balance sheets are not accepted.
Eligible contributions qualify for 100% deduction under Section 80G of the Income-tax Act.
6. PM CARES Fund
PM CARES stands for:
Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund
It was established in March 2020, during the COVID-19 emergency.
Its trust deed was registered in New Delhi on 27 March 2020 under the Registration Act, 1908, and PM CARES is registered as a Public Charitable Trust.
Objectives of PM CARES
Its scope is broader than COVID-19 alone.
It can support relief or assistance relating to:
- public-health emergencies;
- other emergencies or distress;
- natural disasters;
- man-made disasters;
- healthcare/pharmaceutical facilities;
- necessary infrastructure;
- relevant research; and
- assistance to affected populations.
Therefore, a statement saying “PM CARES can only be used for pandemics” would be incorrect.
Who Manages PM CARES?
The Prime Minister is the ex-officio Chairman.
The ex-officio trustees are:
Defence Minister
Home Minister
Finance Minister
The Chairperson can also nominate three trustees from specified fields such as research, health, science, social work, law, public administration and philanthropy.
How Is PM CARES Funded?
PM CARES consists entirely of voluntary contributions from individuals and organisations.
It does not receive budgetary support.
It can also accept foreign contributions because it has an exemption under the Foreign Contribution (Regulation) Act (FCRA) and maintains a separate account for foreign donations.
Eligible donations qualify for 100% deduction under Section 80G.
Eligible corporate donations can also qualify as Corporate Social Responsibility (CSR) expenditure.
PMNRF vs PM CARES
This comparison deserves special attention.
| Feature | PMNRF | PM CARES |
|---|---|---|
| Established | 1948 | 2020 |
| Initial context | Partition-related displacement | COVID-19 emergency |
| Basic nature | Public-contribution relief fund recognised as trust | Public Charitable Trust |
| Created by Parliament? | No | No parliamentary statute; trust deed registered under Registration Act |
| Budgetary support | No | No |
| Contributions | Voluntary | Voluntary |
| Prime Minister's role | Chairman | Ex-officio Chairman |
| Medical assistance | Important existing function | Broader emergency/infrastructure objectives |
| 80G benefit | Yes | Yes |
| Foreign contributions | Accepted | Accepted; FCRA exemption |
| CSR eligibility | Different framework | Eligible donations can count as CSR |
Do Not Confuse PMNRF/PM CARES With NDRF/SDRF
This is the most important conceptual distinction in the entire article.
NDRF & SDRF
They form part of India's statutory disaster-financing architecture under the Disaster Management Act.
PMNRF & PM CARES
They depend on voluntary contributions and receive no budgetary support.
Therefore:
PM CARES and PMNRF should not be described as substitutes for NDRF or SDRF.
They operate through different institutional and financial arrangements.
Relief, Response, Mitigation and Preparedness
UPSC may test these concepts indirectly.
Relief
Immediate assistance to affected populations.
Example: food, shelter or immediate financial assistance after a cyclone.
Response
Actions undertaken during or immediately after a disaster.
Example: evacuation and rescue operations.
Mitigation
Measures designed to reduce future disaster losses.
Example: cyclone shelters or flood-risk reduction infrastructure.
Preparedness
Capabilities developed before a disaster so authorities and communities can respond effectively.
Example: evacuation drills, training and warning systems.
The 16th Finance Commission's framework explicitly brings preparedness and capacity building into the mitigation-side financing architecture.
The Evolution of India's Disaster-Financing Approach
India's approach can be understood as a transition:
Relief-centric approach
↓
Institutional disaster response
↓
Dedicated mitigation financing
↓
Preparedness & capacity building
↓
Disaster resilience
This reflects the broader philosophy of the Sendai Framework for Disaster Risk Reduction: reducing risk before disaster occurs is generally more sustainable than repeatedly paying for losses afterwards.
10 High-Value Prelims Facts
- NDRF — Section 46, Disaster Management Act, 2005.
- SDRF — Section 48(1)(a), Disaster Management Act.
- SDRF is the primary disaster-response fund available with states.
- NDRF supplements SDRF for disasters of severe nature when adequate SDRF resources are unavailable.
- NDRF is funded entirely by the Central Government.
- SDRF cost-sharing is generally 75:25.
- For Northeastern/Himalayan states, the ratio is 90:10.
- PMNRF was established in 1948.
- PM CARES was established in 2020 as a Public Charitable Trust.
- NDMF/SDMF = mitigation; NDRF/SDRF = response.
Master Comparison Table
| Fund | Level | Main Purpose | Legal/Institutional Character | Funding |
|---|---|---|---|---|
| NDRF | National | Disaster response | DM Act, Sec. 46 | Centre |
| SDRF | State | Disaster response | DM Act, Sec. 48(1)(a) | Centre + State |
| NDMF | National | Disaster mitigation | Disaster-risk financing framework | National allocation |
| SDMF | State | Disaster mitigation | Disaster-risk financing framework | Centre + State |
| PMNRF | National | Relief + specified medical assistance | Public-contribution fund/trust; not constituted by Parliament | Voluntary contributions |
| PM CARES | National | Emergency/distress assistance | Public Charitable Trust | Voluntary contributions |
UPSC Prelims Practice MCQs
Q1. With reference to disaster-management financing in India, consider the following statements:
- The National Disaster Response Fund is constituted under the Disaster Management Act, 2005.
- The State Disaster Response Fund is funded entirely by the Union Government.
- The National Disaster Mitigation Fund is intended primarily for disaster-risk mitigation.
Which of the statements given above are correct?
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: B
Statement 2 is incorrect. SDRF is jointly financed by the Centre and states.
Q2. Consider the following pairs:
| Fund | Purpose |
|---|---|
| NDRF | Response |
| NDMF | Mitigation |
| SDRF | Response |
| SDMF | Mitigation |
How many of the above pairs are correctly matched?
A. Only one
B. Only two
C. Only three
D. All four
Answer: D — All four
Mains Practice Question
“An effective disaster-financing system must invest not only in post-disaster relief but also in mitigation, preparedness and resilience.” Examine India's evolving disaster-financing architecture in this context.
GS Paper III | 250 words
Frequently Asked Questions
1. What is the primary disaster-response fund available with states?
The State Disaster Response Fund (SDRF).
2. When does NDRF become important?
It supplements SDRF when a disaster is of severe nature and adequate resources are unavailable in the state's SDRF.
3. Is NDRF funded by states?
No. The entire contribution to the National Disaster Response Fund comes from the Central Government.
4. Are PM CARES and PMNRF government-budget funds?
No. Both depend on voluntary contributions and receive no budgetary support.
5. Was PMNRF created by Parliament?
No. The PMO specifically states that PMNRF was not constituted by Parliament.
6. Is PM CARES restricted to COVID-19?
No. Its stated objectives cover public-health emergencies as well as other natural or man-made emergencies, calamities and distress.
7. What is the difference between NDRF and NDMF?
NDRF = response
NDMF = mitigation
8. What is the difference between SDRF and SDMF?
SDRF = state-level response
SDMF = state-level mitigation
Conclusion
India's disaster-financing architecture should not be understood as a collection of similarly named relief funds.
It is a multi-layered system:
NDRF + SDRF → Response
NDMF + SDMF → Mitigation
PMNRF + PM CARES → Voluntary relief/emergency assistance
The deeper transformation is from a system focused predominantly on paying for disaster losses towards one that increasingly finances risk reduction, preparedness and resilience.
For UPSC aspirants, that conceptual shift is more important than simply memorising the names of the funds.
Official Sources
Ministry of Home Affairs — Disaster Response & Mitigation Funds
Prime Minister's Office — PM CARES Fund
