Lok Sabha Question No. 1632 (UNSTARRED), answered on 2016-11-25
Subject: Commitment Charges
Ministry: FINANCE
Asked by: SHOBHA KARANDLAJE

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## LOK SABHA

## Unstarred Question No。 1632

## TO BE ANS￢電RED ON NOVEDIEBER 25,2016/Agrahayana 4,1938(Saka)

## Commitment Charges

## OT]ESTTON

## 1632. KUMARI SHOBHA KARAI\DLAJE:

Will the Minister  of FINANCE be pleased  to state:

- (a) whether the Government has disbursed hefty commitment charges on unutilized foreign assistancefloans  taken for various development projects;
- (b) if so, the details thereof and the reasons  therefor and the amo,nt on commitment charges paid during  the last three years  and the current year;
- (c) the details of sectors  that lag behind  in matching  the pace  of the expenditure committed by the Government  while negotiating loans with world Bank and Asian Development  Bank; and
- (d) the steps taken to expedite the sectoml projects  and save the expenditure on commitment charges?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF'FINANCE (SHRI ARJUN RAMMEGI{WAL):

- (a)  & (b) The commitment fee/ charges  are payable by the borrowers on the undisbursed loan amount as per the agreement  signed with the multilateral/bilateral funding agencies  from time to time. Terms and conditions  of the loan agreement are in accordance  with the operational  policies  of the multilateral agencies/  lending policies  of the bilateral agencies. The commitment  fee/ charges paid by the

Govemment on extemal undisbursed loans■ om 2013-2014 to 2016-2017 are as llnder:-

| Donor   |   2013- 14 (h INR cro") |   2014⼆ 15 (in INR cror") |   2015- 16 (in m crOrg ) |   2016¨ 17 (inい R CrO郎 ) |
|---------|-------------------------|---------------------------|---------------------------|--------------------------|
| ADB     |                   47.46 |                     49.21 |                     57.58 |                    42.89 |
| Germany |                    9.78 |                      8.47 |                      7.36 |                     4.48 |
| Japan   |                   49.99 |                     46.1  |                     37.75 |                    30.3  |
| IBRD    |                   10.09 |                      6.74 |                      7.91 |                    10.64 |

(c) & (d) The list of sector-wise utilization  of Govemment  Loans from 2A13-2014 to 2016-2017  is at Annexure.  During the negotiation  the total loan to be taken along with the project period is negotiated  & finalized.  However, the actual pace of expenditure depends on the physical progress  of the project.  Projeots in most of the sectors lag in implementation due to unforeseen delays in procurement, technical  issues,  HR related issues and environment  related issues.

Several steps have been taken to expedite the sectoral projects and minimize the expenditure  on commitment fee/ charges.  A Project Readiness  checklist has been prepared for all the new Projects supported by Multilateral  Financial  Institutions. This Readiness criterion makes it mandatory that 100% of the consultancies  are awarded, award of bids for contract worth at least 30Yo of the project cost are finalized and all statutory clearances like environmental/  forest clearances are in place before the project is negotiated.

For the existing projects supported by Multilateral Financial Institutions,  strict monitoring of projects through Tripartite  Review Meetings (TPRM), State Review Meetings (SRM) and TPRMs for Slow Moving Projects is being undertaken. Further, D.O. letter at Secretary level are issued to Line Ministries and State Governments  bringing out various issues in  implementation  of project. Consequent to the project review, cancellation  of uncommitted loan amount is also undertaken to reduce the payment of commitment fee/ charges.

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## Aid,Accountsだ%Audit lDivisiOn

## Utilisation OfGovemFnent Loans Fron1 2013-2- 14 To 2016- 2017

|                                 |        |               |            |             | 2016- 201   |        |
|---------------------------------|--------|---------------|------------|-------------|-------------|--------|
|                                 | ′ 7VR  |               |            | 026         | 000         |        |
| General                         | ′ NR   | '03 6309      |            | 9′          | 2ス 28       |        |
| - Power                         | rA/R   | ′ ′ 3509θ     | f,イ 02.33  |             | θ′ θ07      |        |
| F!NArVCF Fina″ ciaF Secror      | rNR    | 000           | ′ ,52′ .0イ | 00          | a           |        |
| HEALTH Hea肋                     | rArR   | 000           | 0.00       | Z∂δ         | 20206       |        |
| 771カ ●                          | rArR   | 5523          | ′ 35       | 75′ イ7      | ′ 27.25     |        |
|                                 | rrvR   | ′ δ           | イプ′ 0      | 6イ 52       | ′ 767       |        |
| rlVRDわ 縮 sm″                    | rrvR   | `イ ′ ′ Oθ a83 | ′ ′ 06a6θ  |             | ′ ,7′ a9イ   |        |
|                                 | rlvR   | f′ 260        | イ イ 03イ    | 3εf 6θ      | ff9イ 6      |        |
| RD R● ra′                       | ′ NR   | ブ θ 3.36      | イ          | θ           | ブ ,0ブ a33   |        |
| Sodal                           | JAfR   | 339.16        | `Z36 44654 | `660 32583  | ′ 2536      |        |
|                                 | rNR    |               | ′ δZ 70    | ブ イ 09イ     | zaィο        |        |
|                                 | rNR    | 9∂′ .50       | θ′ 329     | ′ ,86`6f    | 60883       |        |
|                                 | lNR    | 7277          | 6635       | 5,91        | ′ イ 9       |        |
|                                 |        |               |            |             | Oθ          |        |
| secrOr                          | rAJR   | 59            | 6′ 66      | 927イ        | ′ ,732.6イ   |        |
| and                             | FNR    | aoo           | ブ 6        | 000         | 20`         |        |
|                                 | rNR    | .θ 9          | 5959       | 9724        | ′ 29.59     |        |
| Secbr-                          | rAIR   | `Oθ 7θ 5,9f   | 296220     | ′ 9.3イ      | 73          |        |
| Secbr-                          | rNR    |               | 257.ザイ     | 6′ 633      | イ39         |        |
|                                 | rNR    |               | aοο        | 76θ         | 7588        |        |
|                                 | rNR    | a00           | 0          | aOο         | f`50        |        |
| 聖 Crar Secゎ ′ Ed●carrOa         | :NR    | 000           | 605        | Z           | ′ 3.36      |        |
| υ RDE                           | rNR    |               | 602f0      | ′ ,3θ 592   |             |        |
| 脈 MⅣ μarer Resources            | rArR   |               | Oθ0 90     | 971.84      | イ 6287      |        |
| 階 rer                           |        |               |            |             |             |        |
|                                 | rNR    | 0.00          |            | ′ θ イ .27   | 7.06        |        |
| 111,11                          | 111,11 | 111,11        | 111,11     | 111,11      | 111,11      | 111,11 |
|                                 | rArR   | イ 8377        | 7099イ      | 6939,       | 246イ9       |        |
|                                 |        | fイ 5,6        | 229.イ 0    | ′ 5Z′ 7     | ′ 252∂      |        |
|                                 | JArR   | 288           | 5f′3       | a00         | 000         |        |
| HEスι THだ oamり SecrOr            | lNR    | ・イ 2993       | イ f25`     | 59イ 29      | 6           |        |
| fnfrasncr● /0                   | rArR   | 2イ6′′         | 25Zイイ      | 27イ 29      | ``2θ        |        |
| NRD lnfrastructuro Sacfor- Road | rNR    | ′ ,θ 2a fδ    | ′ ,05α 9f  | ア イ ユ′ θ    | ′ ,0665′    |        |
| ム 」 P4ιaw a″ d                  | rNR    | イ 209         | ′ 0        | イ イ56       | 369.32      |        |
| DIsasゎ′                         |        | イ 0587        |            | 627         | 62Z33       |        |
|                                 |        | ′ ,00∂ θ イ    | 70254      |             | 56α イ′      |        |
|                                 | rArR   | 279.0`        | ′ 236イ     |             | 669         |        |
|                                 | rNR    |               | 285Z97     | 2イ          |             |        |
| t/RDE tl● a″                    | ノ Ⅳ R  | イ .5f         | ′ 33イ      |             | Z9θ         |        |
| Yvafer Resourcas                | rNR    | 26ア .θ ′      | 25イ.90     | '33イ 574.27 | イ6ZO′       |        |
| Water Supofu and                | JArR   | 675.          | 6イ 977     | 3θ          | 28′ 45      |        |
|                                 |        | 57.77         | 76         | 26 ff       | ′ ,79       |        |
|                                 |        | 92.           | 5289       | ′ デ イ       | 5イ 86       |        |
|                                 |        |               | ′ ′ ′ .09  | 79.25       | 93′3        |        |

Note:Da"for current■ nanc:al year(2016- 2017)upt0 21′ 11′2016.PЮvisiona:2015-2016,2014…2015

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