Chandigarh, October 2 – The ongoing tussle between the Centre and the Aam Aadmi Party-led Punjab government over the use of the State Disaster Response Fund (SDRF) escalated further after Punjab Governor Gulab Chand Kataria categorically rejected the state’s request to revise SDRF norms.
Speaking to mediapersons on the sidelines of an event on Thursday, the Governor stated that the SDRF guidelines were framed uniformly for the entire country and could not be altered to suit the needs of any one state. “Any change in norms must come through a collective national decision, not at the instance of a single state,” Kataria said.
Governor Points to Available Funds
The Governor also reiterated that Punjab has Rs 12,000 crore available in its SDRF account, which the government can use for immediate relief and compensation to flood-hit victims. His remarks counter the state government’s claims that they only have access to about Rs 6,000 crore.
This development comes in the wake of Punjab witnessing its worst floods in four decades, which caused widespread devastation across multiple districts. The AAP government has been pressing for relaxation in SDRF norms so that it can provide enhanced compensation packages to the affected families, farmers, and businesses.
Clash Between Centre and State Over Relief Funds
The state’s demand for revised guidelines follows its earlier submission of a massive flood relief package request of Rs 20,000 crore to the Centre, citing estimated losses of around Rs 13,800 crore. Chief Minister Bhagwant Mann, during his recent meeting with Union Home Minister Amit Shah, had raised the issue, arguing that Punjab’s current financial situation and scale of damage demanded urgent flexibility in SDRF utilization.
However, Amit Shah too had echoed the Governor’s stance, pointing out that sufficient funds already exist in Punjab’s SDRF corpus and urging the state to deploy them effectively rather than seeking exceptions.
Background – SDRF and Its Rules
The State Disaster Response Fund is a statutory fund created under the Disaster Management Act, 2005. It is jointly financed by the Centre and state governments to provide immediate relief in case of natural calamities. The fund comes with strict spending guidelines – covering approved disasters such as floods, droughts, earthquakes, and cyclones – and also places caps on how much can be paid out as compensation to affected households.
Punjab’s demand for revising these guidelines stems from the extraordinary nature of the 2025 floods, which experts say were the most destructive in over 40 years, causing massive loss to crops, livestock, homes, and infrastructure. The state government insists that the current SDRF norms are outdated and inadequate to deal with the magnitude of the crisis.
Way Forward
While the Centre has shown little inclination to make state-specific changes in SDRF rules, pressure is likely to mount on the Union government as Punjab’s flood-hit population continues to demand speedy and adequate compensation. The state leadership is expected to raise the issue again in upcoming inter-governmental forums.
For now, Governor Kataria’s clear statement has shut the door on Punjab’s immediate hopes of a special relaxation, leaving the AAP government with the option of either mobilizing the available Rs 12,000 crore or continuing to lobby for an expanded relief package.
