Himachal Pradesh CM, in a meeting with the 16th Finance Commission Chairman, urged a revision of the Disaster Risk Index (DRI) for hill states, highlighting that the uniform index of the 15th Finance Commission overlooked Himalayan vulnerabilities and resulted in inadequate disaster relief allocations.

What is Disaster Risk Index (DRI)

• The Disaster Risk Index (DRI) is a composite tool used to measure, assess, and compare the level of risk different regions face from disasters. 
• Core Dimensions of DRI
• • Hazard Exposure – Likelihood of natural disasters (earthquakes, floods, landslides, cyclones, etc.).
  • Vulnerability – Susceptibility of people, infrastructure, and ecosystems (poverty, housing quality, planning, environmental degradation).
  • Coping/Adaptive Capacity – Ability to respond, recover, and build resilience (governance, healthcare, infrastructure, early warning systems, preparedness).

Issues with Current Disaster Risk Index (DRI)

• Uniform Matrix Limitation: 
  • One-size-fits-all approach ignored state-specific hazards.
  • Does not consider hazards specific to hill states such as landslides, snow avalanches, cloudbursts, forest fires, and Glacial Lake Outburst Floods (GLOFs).
• Hill State Specificity: Mountainous regions face higher frequency and intensity of such disasters, requiring tailored assessment

Himachal Pradesh’s Key Demands

• Separate DRI for Hill States: A new index considering unique indicators relevant to Himalayan ecology and vulnerability.
• Dedicated Allocation: Separate funds for hill states based on this revised DRI, distributed horizontally among them.
• Green Fund: Creation of a ₹50,000 crore annual fund as Special Central Assistance (SASCI) for ecological services provided by hill states (forests, water, biodiversity).
• Inclusion of Cold Desert Areas: Snow-covered and cold desert regions above the tree line to be recognised alongside dense forest areas for their ecological significance.

Significance of Revising DRI

• Ensures equitable allocation of funds to high-risk geographies.
• Strengthens disaster preparedness in ecologically fragile Himalayan states.
• Supports climate change adaptation, given rising extreme weather events.
• Recognises ecosystem services provided by hill states to the nation.

About 16th Finance Commission (FC)

• Constituted to decide Centre–State tax revenue distribution for FY 2026–27 to FY 2030–31 (five years).
• Report due: 31 October 2025.
• Objective: Review fiscal policies and recommend resource sharing to strengthen fiscal stability and economic growth.
• Composition:
• • Chairman: Arvind Panagariya
  • Other Full time Members: A.N. Jha, Annie George Mathew, Niranjan Rajadhyaksha, Soumya Kanti Ghosh

Terms of reference

• Tax Devolution: Distribution of net tax proceeds between Centre & States (Art. 280 + Part XII).
• Grants-in-Aid (Art. 275): Principles for grants to States beyond revenue needs.
• Local Bodies: Measures to augment Consolidated Fund of States for Panchayats & Municipalities.
• Disaster Management Financing: May review current financing under DM Act 2005 and suggest improvements and recommendations.

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