How can States use disaster funds for heatwaves?, Pg8

Key Highlights:

• Heatwaves and lightning have been added to India’s list of notified natural calamities, bringing the total to 14.
• This change follows a recommendation by the Sixteenth Finance Commission (FC-XVI) and new operational guidelines.
• Heatwaves are now eligible for the full State Disaster Risk Management Fund pool, removing previous funding limitations.
• The FC-XVI recommended ₹2.04 lakh crore for State disaster funds for 2026-27 to 2030-31, a 28% increase.
• Of this, ₹1.6 lakh crore is allocated to the State Disaster Response Fund (SDRF) and the remainder to the State Disaster Mitigation Fund (SDMF).

Heatwave and Lightning.jpg

Detailed Insights:

• The previous system limited heatwave funding to 10% of a State's annual SDRF allocation, treating it as a 'local disaster'.
• India faces increasing exposure to extreme heat, with over 57% of districts and roughly three-fourths of the population at high-to-very-high heat risk.
• The National Disaster Management Authority (NDMA) has urged all States, districts, and cities to develop Heat Action Plans (HAPs).
• Implementation of HAPs has been slow due to limited technical capacity, competing priorities, and inadequate funding.
• The new notification allows States to use SDRF for immediate relief and compensation, and SDMF for long-term risk reduction measures like cooling shelters and early-warning systems.
• State Disaster Management Authorities and State Emergency Operations Centres are designated as nodal agencies for these funds.
• There is a need to expand HAPs beyond the current 300 cities/districts and convert these plans into fundable projects.
• Improving health surveillance for heat-related illnesses and linking heat solutions with other government development schemes are crucial next steps.
• Parametric insurance, which provides automatic payouts upon reaching a set temperature threshold, is suggested as an effective tool.
• Article 280 of the Constitution mandates the Finance Commission to recommend arrangements for disaster management funds.

Key Concepts Involved:

• Sixteenth Finance Commission (FC-XVI): A constitutional body that recommends financial arrangements between the Union and State governments, including disaster management funds.
• State Disaster Response Fund (SDRF): Primary fund available with State governments for immediate response, relief, and reconstruction following notified disasters.
• State Disaster Mitigation Fund (SDMF): Fund established to finance interventions aimed at reducing the risk of climate events turning into disasters in the longer term.
• Heat Action Plans (HAPs): Comprehensive strategies developed by States, districts, and cities to map heat risk, identify vulnerabilities, and implement short, medium, and long-term interventions.
• Parametric Insurance: An insurance product that pays out a pre-determined amount if a specific, measurable event (e.g., temperature exceeding a threshold) occurs, rather than based on actual losses.