Lok Sabha Question No. 1426 (UNSTARRED), answered on 2018-12-19
Subject: Developmental Assistance Programme
Ministry: EXTERNAL AFFAIRS
Asked by: VIJAY KUMAR S.R., T. RADHAKRISHNAN, ASHOK SHANKARRAO CHAVAN, KUNWAR HARIBANSH SINGH, S. RAJENDRAN, SUDHEER GUPTA

## LOK SABHA

## UNSTARRED QUESTION NO.1426

TO BE ANSWERED ON 19.12.2018

## DEVELOPMENTAL ASSISTANCE PROGRAMME

## 1426. SHRI S.R. VIJAYAKUMAR:

SHRI T. RADHAKRISHNAN:

SHRI ASHOK SHANKARRAO CHAVAN:

KUNWAR HARIBANSH SINGH:

SHRI S. RAJENDRAN:

SHRI SUDHEER GUPTA:

Will the Minister of EXTERNAL AFFAIRS be pleased to state:

- (a) whether   many   of   the   Indian   projects   running   under   country's   developmental assistance programme abroad and which are of strategic importance are lagging behind in terms of completion;
- (b) if so, the details of such projects along with the reasons for such slow pace, countrywise;
- (c) whether the Government plans to launch more Quick Impact Projects (QIPs) in East Asia and other countries under its developmental assistance programme;
- d) if so, the details thereof and the time by which it is likely to be launched; and
- (e) the other steps taken/ being taken by the Government to complete the foreign projects under its developmental assistance programme in time bound manner?

## ANSWER THE MINISTER OF STATE IN THE MINISTRY OF EXTERNAL AFFAIRS

## [GEN. (DR) V. K. SINGH (RETD)]

(a) & (b) India has undertaken and continues to undertake several projects under our development cooperation programme, which have over the years, made positive impact on the economic development of the country concerned and in the lives of their people. There are however, some projects which are running behind schedule. These are mainly long gestation and/or large infrastructure  projects  in sectors  such as power, roads, railways, industrial units etc. There are several possible factors which may, and do cause delays, many of which, are under the partner countries own sphere of responsibility and not necessarily due to delays from our side. The type of delays which are normally faced, result from issues such as security threats, political or socioeconomic crisis in the partner countries, delays in land acquisition, local permits, internal approvals or finalization of Detailed Project Report (DPR) by the host government, lack of capacity to provide data or certain facilities, change in scope of projects by host government, natural calamity or geological factors such as difficult terrain or excessive rains that do not allow for work during the monsoon months in the host country, or issues such as delays in mobilization of manpower and resources on part of the Indian contractors.

(c) & (d) During the 6 th   Mekong Ganga Cooporation Ministerial Meeting held in New Delhi on 04 September 2012, India announced the establishment of an India-CLMV Quick Impact Projects (QIPs) Revolving Fund with an annual contribution of US$ 1 million towards QIPs for Cambodia, Lao PDR, Myanmar and Vietnam. Each country can have 5 QIPs,   each   QIP   costing   about   US$   50,000.   There   are   currently   13   QIPs   under implementation   in   Cambodia,   Lao   PDR   and   Vietnam   and   4   QIPs   under   process   in Cambodia.   There   are   at   present   3   QIPs   under   implementation   in   Lao   PDR,   viz., Establishment of Fertilizer Analysis Laboratory at Department of Agriculture and Land Management, Promotion of Goat Raising in Lao PDR in Jieng Village, Thoulakhom District, Vientiane Province and Promotion of Green Cardamom Cultivation in Paksong District, Champasak Province.

(e) The Government gives high priority to time-bound completion of projects. The revision of guidelines that govern GoI Lines of Credit (LOCs) has made a positive impact on the quality of implementation  on ground. Since  we have had cases where the development partner may not have adequate capacity to submit proposals, in cases where under a GoI LOC, the borrowing government seeks assistance in preparation of the Detailed Project Report (DPR). A Project Preparation Facility (PPF) has been set up to expeditiously   provide   free-of-cost   Indian   consultancy   support   to   the   requesting governments in the preparatory phase of project formulation and project design by using 1% of the LOC amount. Government also undertakes detailed review and monitoring meetings periodically with all stakeholders to determine the progress of projects and resolve any issues that may arise in project implementation. For projects under GoI LOCs, MEA and Exim Bank of India undertake joint review meetings with representatives of the borrowing governments as well as the Indian implementing agencies. Indian Missions abroad undertake regular and detailed monitoring at their end, including close liaising and constant follow up with the host governments as well as project site visits. In case of unreasonable delays in project execution by the Indian contractor, penalty clauses are also invoked.

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