INDIA TO DISCONTINUE RECEIVING SMALL AID PACKAGES
TO PREPAY RS. 7490 CRORE OF BILATERAL
The Union Finance
Ministry has decided to discontinue receiving aid from certain
bilateral partners with smaller assistance packages so that their
resources can be transferred to other developing countries in
greater need of Official Development Assistance. In India, the
aid would be directed towards NGOs working in specified areas.
India will not accept any tied aid in future.
Accordingly, it has
been decided to discontinue taking aid from bilateral-partners
other than Japan, UK, Germany, USA, EC and the Russian Federation.
This is as a follow up of the Finance Ministerís Budget announcements.
While phasing out such aid, the existing programmes which are
ongoing and approved out of grants by donor countries will , however,
continue and reach their completion.
Any further grants
from these bilateral-partners would be directed towards institutions,
universities, NGOs etc. and not to the central or state governments.
The Department of Economic Affairs would hold annual consultations
with these bilaterals, so that the list of institutions and NGOs,
which the donors propose to assist, and the purpose for funding
are made available. Other than this, the donors will work directly
with the institutions.
bilateral debt in respect of twenty countries as on 31.3.2003
stands at Rs.66, 316.07 crores. In respect of repayment of bilateral
credit, prepayment will be done in respect of all outstanding
bilateral debts except outstandings to Japan, Germany, USA and
France. The outstandings from these four are to the tune of Rs.58825.30
crores. The balance amount due to fourteen countries is Rs. 7490.77
crores. These include Netherlands, Russian Federation, Canada,
Sweden, Italy, Denmark, Belgium, Austria, Kuwait, Spain, Switzerland,
Saudi Arabia, Australia, Czech & Slovak. There are no outstanding
bilateral debt liabilities to UK and Norway.
With this step, India
would now provide relief to a large number of its bilateral partners
with smaller assistance packages, so that their resources can
be transferred to specified NGOs in greater need of official development
It would be recollected
that in his Budget speech, the Finance Minister had said that
a stage has come in our development where we are required to review
our dependence on external donors.