CHAPTER 4 Financial arrangements

1. NATIONAL POLICY ON
DISASTER MANAGEMENT-
2009
CHAPTER 4;
FINANCIAL ARRANGEMENTS
PREPARED BY:
MOHAMED HUDAIF T
MSW IIND YEAR (HRM)
DEPT OF SOCIAL WORK
PONDICHERRY UNIVERSITY

2. Approach
Inorder tobring about a paradigm shift from
the relief-centric approach toone covering
prevention, preparedness and mitigation,
efforts wouldbe made tomainstream
prevention and mitigation measuresinto
the developmental plans and programmes
by enlisting cooperation from all
stakeholders.

3. DM to be in-built in Developmental Pla
4.2.1;
 NDMA will ensure mainstreaming of
disaster risk reduction inthe
developmental agendaofall existing and
newdevelopmental programmes and
projects which shallincorporate disaster
resilient specifications in design and
construction.
 The Planning Commission will give due

4. National Disaster Response
and Mitigation Funds
4.3.1;
 A National Disaster Response Fund may be
constituted as mandated in the Act.
 The National Disaster Response Fund will be
applied by the NEC towards meeting expenses
for emergency response, relief and
rehabilitation, in accordancewith the
guidelines laid down by the Central
Government in consultationwith the NDMA.

5.  The proposal for merging the National
Calamity Contingency Fund (NCCF) with
the National Disaster Response Fund
shall be as recommended by the Finance
Commission from time totime.

6. 4.3.2;
 Similarly, as mandated by the Act,the
National Disaster Mitigation Fund (NDMF)
may be created for projects exclusively
for the purpose of mitigation.
 The NDMF shall be applied by the NDMA
and shall be as recommendedby the
Finance Commission from time totime.

7. Responsibilities of the Central Min
and Departments
4.4.1;
 All Central Ministries and Departments will
prepare their DM plans including the financial
projections to support these plans.
 The necessary budgetary allocations will be
made as part of the Five Year and Annual
Plans.

8. State and District Level Arrangeme
4.4.2;
 Itshall be the responsibility of the States
to constitute the Disaster Mitigation and
Response Funds at the State as well as
District levels.
 The modalities for the application of these
funds will be worked out in accordance with
the provisions of the Act.

9. Mitigation Projects
4.4.3;
The guidelineson various disasters will form
the basis for the formulation of plans for
mitigation projects at the National, State and
District level.
Central Ministries and Departments as well as
the State Governments will identify Mitigation
Projects for implementation.
The National level mitigation projects will be
duly prioritised and approved in consultation

10. Techno-Financial Regime
4.5.1;
 Considering that the assistance provided by
the Government for rescue, relief,
rehabilitation and reconstruction needs
cannot compensate for massive losses on
account of disasters, new financial tools
such as catastrophe risk financing

11.  Risk insurance, catastrophe bonds,
micro-finance and insuranceetc., will be
promoted with innovative fiscal incentives
to cover such losses of individuals,
communities and the corporate sector.
 In this regard, the Environmental Relief
Fund under the PublicLiability Insurance
Act, 1991, enacted for providing relief
to chemical accident victims is worth
mentioning.

12.  Some financial practices such as disaster
risk insurance, micro-finance and micro-
insurance, warranty on newly constructed
houses and structures and linking safe
construction with home loans will be
considered for adoption.

13. THANK
YOU…