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    Covid Impact: Central government relaxes SDRF utilisation norms for one year

    Synopsis

    The 15th finance commission had recommended allocation of Rs 28,983 crore to SDRF, out of which the Centre recently released its share of first instalment of Rs 11,092 crore for 2020-21. The SDRF fund can be used for cluster containment, quarantine and purchase of personal protective equipment for health, municipal, police and fire authorities.

    LockdownReuters
    Maharashtra, which has the highest number of confirmed coronavirus cases, has been allocated Rs 1,611 crore.
    NEW DELHI: The Centre has relaxed the State Disaster Response Fund (SDRF) utilisation norms for the next one year in view of Covid-19 pandemic, authorising “flexibility” and permitting expenditure as per the 2015-16 guidelines, said officials.

    The 15th finance commission had recommended allocation of Rs 28,983 crore to SDRF, out of which the Centre recently released its share of first instalment of Rs 11,092 crore for 2020-21. The SDRF fund can be used for cluster containment, quarantine and purchase of personal protective equipment for health, municipal, police and fire authorities.

    However, in absence of new guidelines on expenditure, the home ministry informed the states to continue with the orders issued after recommendations of the 14th finance commission, said officials. “Out of Rs 28,983 crore, SDRF shall be 80% and the share of State Disaster Mitigation Fund (SDMF) is 20%. Within the 80 allocation, there would be three sub-allocations — response and relief (40%), recovery and reconstruction (30%), preparation and capacity building (10%).

    For 2020-21, there will be “flexibility” in use of sub-allocated funds provided it does not exceed 10% of allotted amount of that sub-window,” the home ministry said in its communication to state governments.

    The ministry further said: “Pending finalisation of new guidelines consequent upon award of 15th finance commission, on constitution and administration of SDRMF/SDRF and SDMF and norms of assistance and expenditure, it has been decided to extend the existing guidelines for a further period of one year or till such time new guidelines or norms are framed.”

    In an order issued on March 14, the home ministry had said it had decided to treat Covid-19 as a “notified disaster” for the purpose of providing assistance under SDRF.

    The Centre contributes 75% of SDRF allocation for general category states and Union Territories, and up to 90% for special category states (Northeast states, Sikkim, Uttarakhand, Himachal Pradesh, and Jammu and Kashmir).

    Maharashtra, which has the highest number of confirmed coronavirus cases, has been allocated Rs 1,611 crore, followed by Uttar Pradesh, which got Rs 966 crore, Madhya Pradesh (Rs 910 crore), Odisha (Rs 802 crore), Rajasthan (Rs 740 crore), Bihar (Rs 708 crore ) and Gujarat (Rs 662 crore).

    The fund can be utilised for expenses such as sample collection and screening; setting up additional testing laboratories and cost of consumables; and purchase of thermal scanners, ventilators, air purifiers, said officials. States are also providing relief to those stranded owing to the lockdown, and have launched helplines and mobile applications to provide relief to them.


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