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.
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