MHA New Fund Norms for Recovery & Reconstruction (R&R)

Syllabus: Disaster management

Source: ET

Context: The Ministry of Home Affairs (MHA) has introduced new guidelines for the creation and management of recovery and reconstruction (R&R) funds, following recommendations from the 15th Finance Commission.

What is recovery and reconstruction (R&R)?

Recovery and Reconstruction (R&R) refer to the processes undertaken after a natural disaster to restore affected areas and rebuild infrastructure.

• Recovery involves actions to return affected communities to normalcy, including repairing homes, restoring services, and addressing immediate needs.

• Reconstruction focuses on rebuilding damaged or destroyed infrastructure, such as roads, schools, and hospitals, and improving resilience to future disasters.

New guidelines of R&R Funding:

• Aim: To bridge funding gaps for states hit by natural disasters by reallocating existing disaster relief resources to better support recovery and reconstruction efforts.

• Origin: Created based on recommendations from the 15th Finance Commission.

• Distribution: Funds are allocated under NDRF & SDRF for: Response and relief Recovery and reconstruction Preparedness and capacity building

• Response and relief

• Recovery and reconstruction

• Preparedness and capacity building

• Purpose: Provides additional funds when state resources are insufficient for recovery needs.

• Funding: The National Disaster Response Fund (NDRF) will allocate 30% of its funds for recovery and reconstruction, with the rest for response, relief, preparedness, and capacity building. States can also use 10% of their annual State Disaster Response Fund (SDRF) allocation for non-notified disasters.

• Nodal Agency: State Disaster Management Authority (SDMA)

• Covered Calamities: Cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloud burst, pest attack, and frost & cold wave.

• Activities Supported: Housing, education, infrastructure, and more.

Recently, the central government introduced the Disaster Management (Amendment) Bill, 2024 in the Lok Sabha, to amend the existing Disaster Management Act, 2005.

Key features | How it enhance disaster preparedness

Preparation of Disaster Management Plans: The Bill reassigns the responsibility of preparing disaster management plans directly to the National Disaster Management Authority (NDMA) and State Disaster Management Authorities (SDMAs), bypassing the National Executive Committee (NEC) and State Executive Committees (SECs). The NDMA’s responsibilities will be expanded to conduct periodic assessments of disaster risks to enhance preparedness. | Example: This streamlined approach is intended to improve responsiveness in cyclone-prone regions like Odisha.

National and State-Level Data Repositories: The Bill mandates the creation of disaster databases at both national and state levels, which will include information on disaster assessments, fund allocation, expenditures, preparedness plans, and risk registers. | Example: Accurate data management will benefit states like Uttarakhand, where frequent floods and landslides require timely information for effective response.

Enhanced Autonomy in Staffing NDMA: NDMA will have the authority to specify its staffing requirements and appoint experts, subject to approval by the central government, thereby boosting its operational efficiency. | Example: In earthquake-prone areas like the Northeast, this flexibility will allow NDMA to quickly onboard specialists for targeted disaster management.

Creation of Urban Disaster Management Authorities (UDMA): New UDAs will be established for state capitals and major cities, except Delhi and Chandigarh, with municipal commissioners and district collectors leading disaster management efforts specific to urban challenges. | Example: Cities like Mumbai, which regularly face monsoon-related flooding, will benefit from a dedicated urban-focused disaster management body.

Formation of State Disaster Response Forces (SDRF): State governments will have the authority to establish State Disaster Response Forces with defined roles and responsibilities, enhancing the effectiveness of local disaster response efforts. The 2005 Act provides for a National Disaster Response Force (NDRF) for specialised disaster response. | Example: Kerala’s annual management of floods and landslides can be more effective with state-specific SDRFs tailored to local needs.

Legal Status for Key Disaster Management Committees The Bill grants statutory status to the National Crisis Management Committee (NCMC) and the High-Level Committee (HLC), strengthening their roles in disaster response and financial management. | Example: This statutory recognition will formalize the role of these committees in handling large-scale disasters like the COVID-19 pandemic.

New Enforcement Provisions and Penalties Section 60A empowers Central and State governments to direct actions to reduce disaster impacts, imposing penalties up to Rs 10,000 for non-compliance. | Example: This provision can help enforce protective measures in vulnerable areas, such as regulating construction activities in landslide-prone regions.

The Bill reassigns the responsibility of preparing disaster management plans directly to the National Disaster Management Authority (NDMA) and State Disaster Management Authorities (SDMAs), bypassing the National Executive Committee (NEC) and State Executive Committees (SECs).

The NDMA’s responsibilities will be expanded to conduct periodic assessments of disaster risks to enhance preparedness.

The Bill mandates the creation of disaster databases at both national and state levels, which will include information on disaster assessments, fund allocation, expenditures, preparedness plans, and risk registers.

NDMA will have the authority to specify its staffing requirements and appoint experts, subject to approval by the central government, thereby boosting its operational efficiency.

New UDAs will be established for state capitals and major cities, except Delhi and Chandigarh, with municipal commissioners and district collectors leading disaster management efforts specific to urban challenges.

State governments will have the authority to establish State Disaster Response Forces with defined roles and responsibilities, enhancing the effectiveness of local disaster response efforts.

The 2005 Act provides for a National Disaster Response Force (NDRF) for specialised disaster response.

The Bill grants statutory status to the National Crisis Management Committee (NCMC) and the High-Level Committee (HLC), strengthening their roles in disaster response and financial management.

Section 60A empowers Central and State governments to direct actions to reduce disaster impacts, imposing penalties up to Rs 10,000 for non-compliance.

Conclusion:

Further ahead, there is a need to encourage a collaborative approach between the central and State governments in disaster management. ensure adequate financial resources are allocated to State and local authorities and broaden the definition of disaster to include climate-induced disasters like heatwaves to address emerging challenges.