FinMin releases first instalment worth Rs 8,873 cr of SDRF to states

The Finance ministry on Saturday said it has released in advance to the states the first instalment worth Rs 8,873.6 crore of the state disaster response fund (SDRF) for the current fiscal.

Up to 50 per cent of the amount released, which is Rs 4436.8 crore, can be used by the states for coronavirus (Covid-19) containment measures.

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 utilisation certificate of the amount provided to the states in the last financial year," the ministry said in a statement.

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 1stinstalment of the Central Share of the State Disaster Response Fund (SDRF) for the year 2021-22 to all the states. An amount of Rs 8,873.6 crore has been released to the states, it said.

The funds from the 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.