Cabinet Approves Second Extension To IDEAS Worth Rs 3771.77 Cr
18 November, New Delhi
The Cabinet Committee on Economic Affairs today approved second extension to the Indian Development and Economic Assistance Scheme (IDEAS) amounting to approximately Rs.3771.77 crore.
The Government of India has been extending Lines of Credit to African and other developing countries under this Scheme since 2005-06. The first extension to the scheme was granted in 2009-2010.
Since the objectives of the scheme continue to be relevant, it has been decided to give second extension to the Scheme for another five years i.e. from 2015-16 to 2019-20, Power Minister Piyush Goyal said here briefing media about the Cabinet meeting.
The above mentioned amount includes the interest equalisation support on existing LoCs as well as new LoCs to be issued during 2015-16 to 2019-2020.
The IDEA Scheme, with suitable modifications and amendments, will continue to be implemented through the Department of Economic Affairs (DEA) in the Ministry of Finance.
he Ministry of External Affairs (MEA) shall select specific projects keeping in view diplomatic considerations and requests received from various developing countries.
The project proposals shall be examined by the Standing Committee comprising JS (DPA), MEA and JS (BC), DEA. On receiving approval of the External Affairs Minister on the recommendations of the Standing Committee, MEA shall forward the proposal to DEA for seeking the approval of Finance Minister. DEA will then issue a formal letter conveying sanction of the Line of Credit.
The LoC will be operated through Export Import Bank of India or any other willing bank/ lending agency decided with the approval of Finance Minister.
”Lines of Credit form an important component of India’s diplomatic strategy and have been very useful in generating goodwill and building long term partnerships. The scheme also attempts to promote India’s strategic political and economic interest abroad by positioning it as an emerging economic power, investor country and partner for developing countries,” Mr Goel said.