Press Information Bureau 

Government of India
Ministry of Home Affairs

The Government has signed an agreement with the World Bank to mitigate the impact of cyclones The Financing Agreement and Project Agreements relating to National Cyclone Risk Mitigation Project (NCRMP) Phase-I were signed between the Department of Economic Affairs, Ministry of Finance, Government of India, the State Governments of Andhra Pradesh and Odisha and World Bank on 14.01.2011. The total cost of the project is approximately 1496.71 crore. 1198.44 crore will be provided by the World Bank as an Adaptable Programme Loan. The remaining amount of 298.27 crore will be contributed by the concerned State Governments.

NCRMP has been drawn up with a view to minimize vulnerability to cyclones and making people and infrastructure disaster resilient in harmony with the conservation of the coastal eco-system in the cyclone hazard prone States/Union Territories of India. The main aim and objective of the Project is to strengthen the structural and non-structural cyclone mitigation efforts to reduce the cyclone risk and vulnerability in the coastal districts prone to cyclones. 

There is no institutionalized mechanism developed as yet in the country to estimate the loss of Gross Domestic Product and that of Government revenue on account of natural disasters annually. However, World Bank in its one of the report (August, 2003) namely ‘India Financing Rapid Onset Natural Disaster Losses in India’ has estimated that in India the direct losses from natural disaster amount to up to 2 per cent of its Gross Domestic Product and up to 12% of Central Government Revenue. 

The Union Government has undertaken various measures like development of institution, capacity buildings of stake holders, financial management etc. to mitigate the impact of natural disaster in the country such as:

A paradigm shift brought in approach to Disaster Management from relief-centric to a holistic, integrated approach involving diverse scientific, engineering, social and financial processes, covering the different phases of disaster management cycle encompassing prevention, mitigation, preparedness, response, relief and rehabilitation,