Lok Sabha Question No. 3532 (UNSTARRED), answered on 2021-03-17
Subject: Developmental Assistance
Ministry: EXTERNAL AFFAIRS
Asked by: Preneet Kaur

## GOVERNMENT OF INDIA MINISTRY OF EXTERNAL AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO.3532 TO BE ANSWERED ON 17.03.2021

## DEVELOPMENTAL ASSISTANCE

## 3532.SHRIMATI PRENEET KAUR:

Will the Minister of EXTERNAL AFFAIRS be pleased to state:

- (a) whether the Government is providing any developmental assistance to any of our neighbouring countries at present;
- (b) if so, the names of the countries, the project/projects, along with the financial assistance being provided along with the details thereof;
- (c) whether the Government proposes to extend any economic assistance to our neighbouring countries, in order to facilitate their economic recovery, in the light of COVID-19 pandemic and if so, the details thereof;
- (d) whether the Government has identified any imminent cross-border ecological   challenge/challenges   that   demands   urgent   regional cooperation; and
- (e)  if so, the measures taken/being taken by the Government to address these issues along with the details thereof?

## ANSWER

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

- (a)    Yes.
- (b) Under the Neighbourhood First Policy, development cooperation is an important component of our engagement with neighbouring countries. There is a specific focus on regional connectivity initiatives which act as force multipliers for regional growth and development while enhancing people to people contact and enhancing economic cooperation. While undertaking   these   projects,   Indian   expertise   is   showcased   in   project planning and implementation in a wide range of areas covering both infrastructure   development   as   well   as   socio-economic   development. Developmental assistance to neighbouring countries is carried out mainly through Lines of Credit, Grant-in-aid & capacity building prorgrams.
- (i)  Lines of Credit:   Development assistance in the form of concessional Lines of Credit is extended by the Government of India under the Indian Development and Economic Assistance Scheme (IDEAS) through the Exim

Bank of India. 45 Lines of Credit worth US$ 14.53 billion covering 263 projects have been extended to 7 countries in our neighbourhood namely Bangladesh,   Nepal,   Sri   Lanka,   Myanmar,   Maldives,   Mauritius   and Seychelles. About 46 % of our Lines of Credit amount and 44.42 % of our Lines of Credit projects are in the neighbourhood. These projects cover varied sectors like roads, railways, power, ports and shipping, telecom, health, education and aviation.

(ii) Grant-in-aid:  The Government has committed to a number of bilateral projects   in   the   last   five   years   under   grant-in-aid   in   our   neighboring countries of Afghanistan, Bangladesh, Bhutan, Maldives, Myanmar, Nepal, Sri Lanka, Mauritius and Seychelles. The projects span different sectors such as connectivity, energy, roads, agriculture, infrastructure, education, culture, capacity building, security and training. These projects are taken up based on the developmental needs of our neighbouring countries and our overall strategic interest in the region.

A substantial part of our grant assistance to neighbouring countries   is   for   connectivity   and   infrastructure   development   projects which promote cross-border connectivity.  India also provides substantial financial   and   technical   assistance   for   implementation   of   High   Impact Community Development Projects (HICDPs) in key areas of education, health, irrigation, rural infrastructure, disaster management and livelihood development in all of our neighbouring countries.

Major projects in the region are -

Nepal: The   first   cross-border   petroleum   products   pipeline   from Motihari (India) to Amlekhgunj (Nepal); construction of four Integrated Check Posts at Biratnagar, Birgunj, Nepalgunj & Bhairahawa equipped with modern facilities to ensure seamless movement of trade and people; the Terai Road project; Jaynagar-Bijalpura-Bardibas rail link; Jogbani-Biratnagar rail link & Raxaul-Kathmandu rail link; the construction  of National Police Academy at Panauti; Nepal Bharat Maitri Polytechnic Institute at Hetauda; construction   of   70   higher   secondary   schools   and   about   147   health facilities.

Bangladesh:   The 12 km Agartala-Akhaura rail link;   dredging of inland waterways;   India-   Bangladesh   Friendship   Pipeline   and   construction   of India-Bangladesh Maitri Setu.  India is also supplying 109 ambulances as a humanitarian gesture.

Myanmar: The Kaladan Multi Modal Transit Transport Project and the Trilateral Highway connecting India, Myanmar and Thailand;  Upgradation of Womens Police Training Centre at Yamethin;  reconstruction assistance to   Rakhine   State   Development   Programme   (RSDP)   and   assistance   to Border Area Development Programme.

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Afghanistan:         Grants-in-aid   assistance   to   Habibia   School   and   Indira Gandhi Institute of Child Health in Kabul;   Shatoot Dam Project; supply of spare parts/refurbishment of old buses; rehabilitation of 16.9 kilometres road connecting Band-e-Amir to Bamyan-Yakawlang Highway; construction of 4000 houses for returning Afghan refugees; establishment of Afghan National   Agriculture   Sciences   and   T echnology   University   (ANASTU)   at Kandahar.

Sri Lanka:    More than 60 grant projects have been completed in different parts of Sri Lanka and 20 projects are at various stages of implementation. This   includes,   Indian   Housing   Project;   Emergency   Ambulance   Service; Jaffna Cultural Centre (JCC); Dickoya Hospital in Hattona; Renovation of 27 Schools   in   Northern   Province;   Construction   of   Multi-Ethnic   Tri-Lingual School in Pollonaruwa; Construction of Surgical unit at Batticaloa T eaching Hospital;   Construction   of   Buildings   for   Faculty   of   Kandian   Dancing   at Pallekelle under Sri Dalada Maligawa and restoration of 28 culture heritage sites.

Maldives:   India is committed to support 9 large infrastructure and socioeconomic projects in the Maldives through the LoC - Water and Sewerage facilities for 34 islands; Road and Reclamation in the southernmost atoll of Addu; Cricket Stadium in Hulhumale; Cancer Hospital; Upgrade of public sector fish processing industry; Construction of a new port in Gulhifalhu to decongest existing Male Port; Construction of a network of bridges and causeways   under   the   Greater   Male   Connectivity   Project   (GMCP); Expansion of the Hanimaadhoo Airport, and; the Expansion of Gan Airport in Addu. In addition, India is supporting more than 30 community-level projects   under   grant   schemes   including   the   High   Impact   Community Development Projects (HICDPs);  Construction of Institute of Security and Law Enforcement Studies (ISLES) and Financial package of US$ 1.4 billion has also been extended   in December 2019 which includes budgetary support, investment in Treasury Bills, Currency Swap and Lines of Credit.

Bhutan: Financial assistance for transitional Trade Support Facility to boost bilateral economic and trade linkages; financial support in terms of loans and grants for ongoing three Hydro Electric Projects.

India also provides scholarships for capacity development of students and professionals from our neighbouring countries at all levels of education in a wide range of disciplines.

(c) For early economic recovery from the shock of COVID-19 pandemic, India has helped Maldives by extending the US$ 400 million Currency Swap Agreement between RBI and the Maldives Monetary Authority for another year in July 2020. Financial assistance of US$ 250 million has also been provided as budgetary support to Maldives through investment by the State Bank of India in Maldives Government bonds of the same value on concessional terms. Further, an air travel bubble has been established between India and Maldives in August 2020. This will help revive the

Maldives tourism industry and boost economic activity, thereby helping them in economic recovery. A regular cargo ferry service between India and Maldives was launched on 21 September 2020.

India has assisted Sri Lanka in its efforts to fight the COVID-19 pandemic. It has extended a $400-million currency swap facility to Sri Lanka to ensure financial stability of the country during the COVID-19 pandemic.

Moreover, in order to mitigate the unprecedented impact of COVID19 pandemic, the G20 Finance Ministers and Central Bank Governors, at a meeting held on 15 April 2020, agreed on the issue of suspension of debt service payment by official bilateral creditors for the poorest countries that   request   forbearance.   In   accordance   with   this,   G20   Debt   Service Suspension Initiative, Government of India has offered debt suspension relief to countries in the neighbourhood.

India has also supplied essential medicines, medical supplies and food items to our neighbouring countries.  Reacting swiftly to the Covid-19 pandemic, India provided them nearly Rs 20.1 Cr worth of medical aid/ humanitarian assistance in the form of medicines, PPE kits, test kits and medical equipment.

With   the   availablity/approval   of   vaccines,   India   has   extended developmental assistance in the form of 'Made in India' vaccines to our neighboring countries. Till date,   Bangladesh, Myanmar, Nepal, Bhutan, Maldives, Mauritius, Seychelles, Sri Lanka and Afghanistan have received nearly 179 lakh doses (nearly 18 million) of vaccines, out of which more than a third (62 lakh doses or 6.2 million doses) have been provided on a grant basis and the rest have been provided through facilitated contracts or the WHO/Covax facility.

(d) & (e) Developmental needs of our neighbouring countries and our overall strategic interests in the region including climate change are given due consideration while offering developmental assistance, in consultation with concerned line ministries.

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