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

  B/F                                                                                         (Rs. in crore)

     Schemes under the NDF  

1. The Prime Minister has approved 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. 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 is concerned, the scheme is being implemented by Ministry of Home Affairs and Ministry of Railways respectively.

     Salient Features of “PM’s Scholarship Scheme” to be implemented out of 

     National Defence Fund.

a. The scheme will apply to armed forces (including paramilitary forces).  Monthly scholarships would be provided 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 would be tenable 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 as at (b) and (c) above, there will be no rank restrictions. The scheme would extend to the wards of all para-military forces also. As such, 4000 scholarships will be for the forces controlled by the Ministry of Defence and 1000 scholarships for the forces controlled by Ministry of Home Affairs and others.

     b. The scholarship will be Rs.1250 per month for boys and Rs.1500 per month for girls.

     The scheme has been inaugurated by the Prime Minister on 14th November, 2006.

2. The Prime Minister during his visit to the Siachen Base Camp has announced the installation of a CT Scan Machine in the hospital at Siachen for providing medical attention to jawans, and two large home theatres for their entertainment, at a cost of Rs.6 crore. Funds for the Home Theaters have been placed at the disposal of Ministry of Defence.  CT scan machines have been installed by Ministry of Defence from their own resources.

3. The Prime Minister during his programme on board INS Viraat had announced upgradation of medical and fitness facilities on the aircraft carrier. Ministry of Defence is working in the matter. On the basis of recommendation of Ministry of Defence, Rs 35.15 lakh has been released.  

4. The Prime Minister had sanctioned a grant of Rs. 7.53 crore for upgradation of three institutions i.e. Queen Mary's Technical Institute, Kirkee, Pune, and Paraplegic Rehabilitation Centre, Mohali engaged in the rehabilitation of disabled soldiers. Funds have been placed at the disposal of the Ministry of Defence.

     5. Prime Minister has sanctioned one time grant of Rs 1.44 crore for the construction of Community Hall- cum – Museum and Library at Kuki Inn Complex, Imphal. Funds have been placed at the disposal of Government of Manipur.

      6. Prime Minister during his visit to Arunachal Pradesh has announced a grant of Rs.90 lakh for Improvement of transit facilities in 2 Division Area (to include kitchen equipment and living accommodation) in Dehan, Senge, Likabali and Missamari and improvement of Communication facilities in RALP (Rest of Aruncahal Pradesh) Area (Purchase of Secure Satellite Communication in Subansiri Valley, Siang Valley, Seam Valley, Lohit Valley and Debang Valley. Funds have been released.