Centre releases Rs 8,873 cr to states from SDRF for Covid-19 relief

The funds from the SDRF may be used by the states for various measures related to the containment of Covid-19

The Centre on Saturday released the first instalment of the State Disaster Relief Fund (SDRF) amounting to Rs 8,873.6 crore to state governments with the option to use 50 per cent funds for Covid-19 containment measures.

The Finance Ministry said it has released the first instalment ahead of the normal schedule without insisting on the utilisation certificate of the amounts given to the state governments last year.

Normally, the first instalment of SDRF is released in the month of June as per the recommendations of the Finance Commission.

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“However, in relaxation of normal procedure, not only has the release of SDRF been advanced but 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 the Ministry of Home Affairs has released in advance of the normal schedule the first instalment of the Central Share of the 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.