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QUESTION NO.3714 LINE OF CREDIT

December 11, 2019

LOK SABHA
UNSTARRED QUESTION NO.3714
TO BE ANSWERED ON 11.12.2019

3714. DR. (PROF.) KIRIT PREMJIBHAI SOLANKI:

Will the Minister of EXTERNAL AFFAIRS be pleased to state:

(a) the year-wise and country-wise amount of Line of Credit extended by India to other countries from 2010-2019;

(b) the year-wise and country-wise amount of grants and aids given by India to other countries from 2010-2019;

(c) whether there have been only few Indian companies benefiting from these LoCs and grants; and

(d) if so the details thereof?

ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF EXTERNAL AFFAIRS
[SHRI V. MURALEEDHARAN]

(a) During the period 2010-19, projects under 168 Lines of Credit (LoC) have been committed and are under various stages of implementation in different countries. The year-wise and country-wise details of the GoI LoCs extended to various countries during the period 2010-19 is attached at Annexure-I.

(b) The year-wise and country-wise expenditure on grants and aid projects (based on data till October 2019) to other countries during the period 2010-19 is attached atAnnexure-II.

(c) & (d) GoI LoCs are governed by a set of guidelines called Indian Development and Economic Assistance Scheme (IDEAS) guideline jointly developed by the Ministry of External Affairs and the Department of Economic Affairs (DEA), Ministry of Finance. Latest version of the guidelines was issued on 07 December 2015. As per the IDEAS Guidelines the Exim Bank of India or the lending bank carries out a Pre-Qualification (PQ) process to shortlist the eligible companies. The criteria for the PQ is decided in consultation with the borrower government depending of the technical and the financial requirement of the project. The list of these Pre-Qualified companies is shared with the borrowing government which in turn carries out the tendering process among the Pre-Qualified companies and recommends the successful bidder to the lending bank. With the concurrence of EXIM Bank, the borrowing government enters into a contract with the selected company. Hence, the selection of contractor for implementing the project is done through competitive bidding. This ensures that all eligible Indian companies can participate in selection process.

With regard to the grant projects the General Financial Rules of the Government and the CVC guidelines are followed.

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