(1) The Central Government may, by notification in the Official Gazette, constitute a fund to be called the National Disaster Response Fund for meeting any threatening disaster situation or disaster and there shall be credited thereto—
         (a) an amount which the Central Government may, after due appropriation made by Parliament by law in this behalf provide;
         (b) any grants that may be made by any person or institution for the purpose of disaster management.
     (2) The National Disaster Response Fund shall be made available to the National Executive Committee to be applied towards meeting the expenses for emergency response, relief and rehabilitation in accordance with the guidelines laid down by the Central Government in consultation with the National Authority.