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National Defence Fund

The National Defence Fund was set up to take charge of voluntary donations in cash and kind received for promotion of the national defence effort, and to decide on their utilisation. The Fund is used for the welfare of the members of the Armed Forces (including Para Military Forces) and their dependents. The Fund is administered by an Executive Committee, with PM as Chairperson, and Defence, Finance and Home Ministers as Members. Finance Minister is the Treasurer of the Fund and the Joint Secretary, PMO dealing with the subject is Secretary of the Executive Committee. Accounts of the Fund are kept with the Reserve Bank of India. The fund is entirely dependent on voluntary contributions from the public and does not get any budgetary support. The fund accepts online contributions. Such contributions can be made through the website i.e., and website of State Bank of India. Collection account number is 11084239799 with State Bank of India, Institutional Division, 4th Floor, Parliament Street, New Delhi.The fund has also been allotted a Permanent Account Number (PAN) AAAGN0009F.

The Income and Expenditure Statement of the NDF for last five years is follows:-

(Rs. in crore)
Year Expenditure Receipts Balance
31.03.2014 65.88 80.93 956.85
31.03.2015 33.98 84.72 1007.59
31.03.2016 46.86 83.53 1044.26
31.03.2017 30.20 82.02 1096.08
31.03.2018 64.75 83.85 1115.18

Schemes under the National Defence Fund

1. A scholarship scheme to encourage technical and post graduation education for the widows and wards of the deceased personnel of Armed Forces and Para Military Forces is being implemented. The scheme is being implemented by the Department of Ex-Servicemen Welfare, Ministry of Defence in respect of armed forces. In so far as personnel of paramilitary forces and Railway Protection force are concerned, the scheme is being implemented by Ministry of Home Affairs and Ministry of Railways respectively.

Salient Features of “PM’s Scholarship Scheme” being implemented out of National Defence Fund:-

1. The scheme applies to armed forces (including paramilitary forces). Monthly scholarships are awarded to wards of

(a) Ex-service personnel (below officer rank only),

(b) their widows,

(c) widows of personnel died in harness due to causes attributable to line of duty and

(d) wards and widows of in service personnel of paramilitary forces and Railway Protection Force. Scholarships are available for education at technical institutions (medical, dental, veterinary, engineering, MBA, MCA, and other equivalent technical professions with suitable AICTE/UGC approval). For wards of widows and widows of personnel died in harness due to causes attributable to line of duty as at (b) and (c) above, there are no rank restrictions. The scheme extends to the wards of all para-military forces also. Under the scheme, every year number of new scholarship given is 5500 for wards of forces controlled by Ministry of Defence, 2000 for wards of forces controlled by Ministry of Home Affairs and 150 for the wards of forces controlled by Ministry of Railways. The existing rate of scholarship is Rs.2000/- per month for boys and Rs.2250/- per month for girls. Scholarship amount for the Academic Year 2017-18 has been released to the Ministries.

2. Annual grant of Rs. 15 lakh from NDF is being released to the SPG Family Welfare Fund to undertake various welfare activities for the benefit of its personnel and their families. Latest grant of Rs.15 lakh was released for financial year 2016-17.

3. Grants are released annually to the Ministry of Defence for purchase of books and other reading materials for the personal of the three Defence Services (Army, Navy and Air Force) and the Coast Guard. The Existing scale of grant is Rs.55 lakh for Army, Rs.37 lakh for Air Force, Rs. 32 lakh for Navy and Rs.2.50 lakh for Coast Guard total amounting to Rs.126.50 lakh. Latest grant of Rs.126.50 lakh has been released for financial year 2017-18.

(Updated as on 20.08.2018)
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