Financial Arrangements done after Bhuj Earthquake 2001

Calamity Relief Fund (CRF) in each state.

The CRF allocation during the period 2000-05 has been increased to Rs 11007.56 crore as compared with Rs 6304.27 crore during 1995-2000.

The efforts are supplemented by provision of additional assistance from National Calamity Contingency Fund (NCCF) during severe calamities.

Calamity Relief Fund (CRF)

Came into force from April 1990.
Set up by each state for financing natural calamity relief assistance (earthquake, cyclone, flood etc.).
Financial share of 3:1 between the Government of India and states.
The government of India’s share comes in as grant-in-aid.
A state-level committee headed by the Chief Secretary of the state administers the Fund.

National Calamity Contingency Fund (NCCF)

Came into force from 2000-01.
Aims to assist natural calamities (earthquake, flood, drought etc.) when the magnitude of the disasters require more support than what the state can provide.
The initial corpus of NCCF was Rs 500 crore.
The National Centre for Calamity Management (NCCM) under the M/o Home Affairs administers the Fund.
Assistance provided by the Centre to States from NCCF is financed by levy of special surcharge on Central taxes for a limited period.

Expenditure norms under NCCF and CRF

Ex-gratia payment to families of deceased persons: Rs 50,000/- per person.
Ex-gratia payment for loss of limbs/eyes: Rs 25,000/- per person.
Injury leading to hospitalisation for more than one week: Rs 5,000/ per person.
Relief for old, infirm and destitute children: Adults- Rs 20/- per day; children- Rs 10/- per day.
Repair/restoration of damaged houses: Fully damaged – Rs 10,000/- (Rs 6,000/- for kuccha); severely damaged – Rs 2,000/- (Rs. 1,000/- for kuccha)
Assistance to artisans (as subsidy) for repair/replacement of damaged equipment : Traditional craft – Rs 1,000/- per person; Handloom weavers – Rs 1,000/- per loom.

Gujarat : Assistance provided

Immediate relief of Rs 500 crore from the NCCF.
NCCF augmented by imposing a 2% surcharge on personal and corporate income tax in Union Budget (2001-02) for assisting Gujarat.
Rs 110 crore provided from PM’s Relief Fund.
Assistance was provided under various centrally sponsored schemes for reconstruction of social and physical infrastructure.
Arrangements were tied up with ADB and World Bank for credit worth US $800 million.
NHB and HUDCO set apart adequate funds for housing reconstruction.
RBI instructed banks to freeze recoveries and extend liberal loans.
Gujarat government was enabled to float tax-free earthquake bonds.