New Delhi [India], July 23 (ANI): In line with its strategic focus on soft-power diplomacy, capacity building, and strengthening economic ties with partner nations across the Global South, India approved six development Lines of Credit (LoC) totalling approximately ₹17,550 crore over the past year, Minister of State for External Affairs Kirti Vardhan Singh informed the Rajya Sabha on Thursday.
Responding to a question in the Rajya Sabha regarding development partnership initiatives, MoS External Affairs Kirti Vardhan Singh stated that the concessional credit lines were extended across critical domains, including infrastructure and connectivity.
“During the last one year, six Lines of Credit have been approved for around 17,550 crores to partner countries. These Lines of Credit have been extended for financing various development projects in the fields such as infrastructure, connectivity, social housing and mobility, health, agriculture and procurement of essential commodities,” the Minister said in a written response.
Extended under the Indian Development and Economic Assistance Scheme (IDEAS) via the Exim Bank of India, these concessional loans empower borrowing nations to build critical domestic infrastructure while creating new avenues for Indian project exports.
A Line of Credit (LoC) is a pre-sanctioned, adaptable credit facility issued by financial institutions that enables borrowers to access funds up to a set limit on an as-needed basis. Under this arrangement, interest is levied exclusively on the sum drawn rather than the total approved amount, and the credit limit replenishes automatically as repaid funds are cleared.
Alongside concessional loans, India also sanctioned significant grant-based assistance over the same period. Highlighting this support, the MoS noted that around 60 projects valued at nearly Rs 4,500 crore received approval across diverse public interest and community development sectors.
“During the last one year, around 60 Projects amounting to nearly 4,500 crores have been approved under grants in sectors such as education, agriculture, renewable energy, information technology, healthcare, digital public infrastructure and connectivity,” Singh stated.
He added, “In addition, a number of Quick Impact Projects and High Impact Community Development Projects as well as projects under plurilateral/multilateral frameworks have been approved under grant.”
To ensure these funded ventures are executed efficiently, the Minister detailed the digital mechanisms established to ensure oversight and progress tracking of overseas ventures, highlighting operational review systems and specialised tracking platforms.
“Suitable monitoring and review mechanisms have been put in place to ensure timely completion of development projects. Further, the New E-Tracking and Remote Administration (NETRA) Portal has been put in place since 2022 for management and monitoring of the Lines of Credit projects,” the response read.
“Separately, Exim Bank of India undertakes impact assessment of completed Lines of Credit projects from time to time,” Singh added.
Outlining the core philosophy guiding India’s bilateral development aid programmes for the current financial period, the Minister emphasised partner-centric cooperation.
“India’s model of development cooperation is demand-driven and is based on the needs and aspirations of partner countries,” Singh said.
Aligned with India’s “Neighbourhood First” policy and broader Global South outreach, these credit lines deepen diplomatic and economic ties with partner nations in Asia, Africa, and beyond. (ANI)
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