1st instalment of ₹ 8873.6 crore for State Disaster Response Fund (SDRF) released in advance

Up to 50% of the SDRF amount can be used by the States for COVID-19 containment measures

As a special dispensation, the Department of Expenditure, Ministry of Finance at the recommendation of Ministry of Home Affairs has released in advance of the normal schedule the 1^st instalment of the Central Share of the State Disaster Response Fund (SDRF) for the year 2021-22 to all the States.  An amount of ₹ 8873.6 crore has been released to the States. 

Normally, the first instalment of SDRF is released in the month of June as per the recommendations of the Finance Commission.  However,  in relaxation of normal procedure, not only has the release of SDRF been advanced, the amount has also been released without waiting for the utilization certificate of the amount provided to the States in the last financial year.  Up to 50% of the amount released i.e. ₹ 4436.8 crore can be used by the States for COVID-19 containment measures.

The funds from SDRF may be used by the States for various measures related to containment of COVID-19 including meeting the cost of oxygen generation and storage plants in hospitals, ventilators, air purifiers, strengthening ambulance services, COVID-19 hospitals, Covid Care Centres, consumables, thermal scanners, personal protective equipment, testing laboratories, testing kits, containment zone, etc.

Advance release of State Disaster Response Fund permits states to allocate funds for COVID-19 containment measures. Advance release of the State Disaster Response Fund central share for 2021-22 was made earlier than the normal schedule and without prior-year utilization certificates; States may apply up to fifty percent of the released central share for specified COVID-19 containment measures, including oxygen facilities, ventilators, ambulance services, COVID-19 hospitals and care centres, testing infrastructure, personal protective equipment, and containment-zone expenses.