Relief Fund for Disaster Management in India

While disasters be it natural or man-made are burgeoning, the nation has taken a plethora of measures to mitigate the frequencies and aftermaths. These measures have taken various forms so that victims can be benefitted. One of which is a relief fund for disaster management scheme plans.

This article will throw light on different schemes the Indian government has rolled out to provide victims with an adequate amount of relief fund for disaster management.

Prime Minister’s National Relief Fund (PMNRF)

• Objectives:

• The Prime Minister’s National Relief Fund (PMNRF) was formed through public contributions in January 1948 in response to an appeal by then-Prime Minister Pt. Jawaharlal Nehru to aid displaced individuals from Pakistan.
• To provide relief funds for disaster management to victims of natural or man-made disasters who have lost their family members due to such tragedies. Some examples of natural disasters include earthquakes, floods etc. Examples of man-made disasters include, terrorist attacks, riots etc.
• To partially cover expensive medical treatment expenses. Examples involve heart surgeries, cancer treatment, kidney transplantation, acid attacks, etc.

• Constitution of the Trust:

• The fund is recognized as a Trust under the Income Tax Act, 1961 and managed by the Prime Minister or multiple delegates for national causes.

• Contributions to the Fund:

• Contributions to the Prime Minister’s National Relief Fund are wholly made by the public.
• Budgetary contributions of public sector enterprises are unacceptable. Moreover, conditional contributions made for specific purposes are unacceptable.
• The fund is invested in different forms with scheduled commercial banks and other agencies.
• Under section 80(G) of the Income Tax Act, 1961, all contributions made towards the Prime Minister’s National Relief Fund are exempted from Income Tax.

PM CARES Fund – Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund

• Introduction

Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund namely PM CARES Fund is a public charitable trust introduced by the Indian government. This relief fund for disaster management aims to provide relief to citizens in case of any emergency situations. For example, situations created by the COVID-19 pandemic or a sudden lockdown. 

• Objectives:

  • To give any form of support or assistance in case of public health emergency or any other emergency i.e., natural or man-made disasters. This may also include creating or upgrading the pharmaceutical or healthcare sector, research & development related to these sectors, etc. 
  • To extend financial aid, provide grants or initiate other needed steps.
  • To undertake any other activities that seem consistent with the above objectives.

• Constitution of the Trust:

• The Prime Minister is the ex-officio Chairman of the Trust. Defence Minister, Home Affairs Minister, and the Finance Minister are ex-officio Trustees. 
• The Chairperson of the Board of Trustees has the right to nominate 3 trustees to the Board of Trustees.
  • Criteria for nomination: The trustees to be nominated shall be esteemed beings in the field of health, science, social work, philanthropy, research, law, and public administration.
• Any person appointed as a Trustee of the fund shall act in a pro bono capacity.
• As decided by the central government, an independent auditor audits the fund instead of the Comptroller and Auditor General (CAG) of India.
• The fund does not come under RTI as under the ambit of RTI Act, 2005,  it is “not a public authority”.  Moreover, this fund is not usable by any state. 

• Contribution to the Fund:

• Only voluntary contributions from individuals/ organisations are accepted in the fund. 
• No budgetary support is given to the fund by the government.
• Donations to Fund would qualify to avail 80G benefits for 100% exemption under the Income Tax Act, 1961.
• Under the Companies Act, 2013, donations made to PM CARES Fund are considered as Corporate Social Responsibility (CSR) expenditure. Corporate Social Responsibility implies that companies voluntarily make decisions to contribute to social welfare and well-being. 
• PM CARES Fund has also been exempted under the FCRA. The exemption under FCRA enables the acceptance of donations or contributions from foreign-based

Conclusion

Because of its unique geoclimatic characteristics, India has always been prone to natural disasters. Floods, droughts, cyclones, earthquakes, and landslides are all common occurrences. Cyclones are a threat to the country’s coastal states, particularly Andhra Pradesh, Orissa, and Gujarat. Drought threatens 68 percent of the territory, while landslides endanger 55 percent of the area in seismic zones III and IV, which fall under the earthquake-prone belt and sub-Himalayan region, as well as the Western Ghat and North, North-East states. Flood and river erosion threaten over 40 million hectares (12 percent of land).

In the event of a disaster, the responsible state government bears the primary responsibility for rescue, relief, and rehabilitation efforts. In the event of major natural calamities, the Central Government supplements the efforts of the state governments by giving logistical and financial help. Through the SDRF, the central government also provides financial help for both emergency rescue and relief as well as long-term team recovery.