Lok Sabha Question No. 3664 (UNSTARRED), answered on 2021-03-17
Subject: Line of Credit
Ministry: EXTERNAL AFFAIRS
Asked by: Krupal Balaji Tumane

## GOVERNMENT OF INDIA MINISTRY OF EXTERNAL AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO.3664 TO BE ANSWERED ON 17.03.2021

## LINE OF CREDIT

## 3664.   SHRI KRUPAL BALAJI TUMANE:

Will the Minister of EXTERNAL AFFAIRS be pleased to state:

- (a) the   details   of   countries   to   which   Line   of   Credit   (LoC)   will   be committed from 2021 to 2024, year wise and country-wise;
- (b) the details of the amount to be released, project-wise and countrywise.
- (c) whether the Government is facing problems in executing LoCs due to lack of interest in the contractors to work in the LoC committed countries;
- (d) if so, the details thereof, country-wise and contractor-wise;
- (e) the steps taken by the Government to encourage contractors to participate in LoC tenders; and
- (f) whether the Government of India (GOI) is thinking to give work to PSUs on nomination basis to encourage work of LOC committed countries; and
- (g) if so, the details thereof?

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

(a) & (b) The Lines of Credit during the period 2021 to 2024 will be offered   depending   on   the   requests   received   from   the   prospective borrowing countries. Extension of Lines of Credit on concessional terms is an important component of India's development partnership model and has   been   very   useful   in   building   long   term   partnerships   with   other developing countries.  The projects taken up under these Lines of Credit are aimed at socio-economic development and capacity building in the partner   countries,   and   promote   local   opportunities   and   interests. Government of India's Lines of Credit are demand driven and are based on the national priorities of the partner countries. Hence, the Lines of Credit will   be   offered   when   the   request   is   received   from   the   prospective borrowing governments.

(c) No.   As   per   the   guidelines   under   the   Indian   Development   and Economic Assistance Scheme (IDEAS) of 2015, the lending bank carries

out the Pre-Qualification   process   for   selection   of   Indian   implementing agencies   (consultants/contractors)   eligible   for   the   project.   Interested Indian   companies   participate   in   this   process.   The   list   of   pre-qualified companies is shared with the borrowing government which then carries out the tendering process. The contract is awarded to the successful bidder by the borrowing government. The projects are then executed as per the contractual obligations and project milestones.

- (d) Not applicable.
- (e) As mandated by the guidelines under the Indian Development and Economic Assistance Scheme (IDEAS) of 2015, the information related to projects under Lines of Credit is displayed on website of the lending bank and also disseminated by it to various industry associations to ensure wide publicity. The borrowing governments are also encouraged to do the same. Accordingly, project under Lines of Credit are widely advertised through leading newspaper, website as well as industry associations by the Exim Bank of India to encourage wide participation. In addition to these, Industry Outreach Programmes have been held in coordination with Exim Bank of India and Industry Association like Confederation of Indian Industry   (CII)   and   Federation   of   Indian   Chambers   of   Commerce   and Industry (FICCI).

(f)   &   (g)       The   selection   of   Indian   Implementing   Agencies  for  projects under Lines of Credit is done in accordance with the Cabinet-approved IDEAS guidelines issued by Ministry of Finance on 07 December 2015. As per the above scheme, fair and transparent selection process through prequalification and tendering is to be ensured. Accordingly, all Indian PSUs can   participate   in   such   pre-qualification   and   tendering   exercise   for projects under Lines of Credit. Large number of contracts have already been won by Indian PSUs like- Bharat Earth   Movers   Limited   (BEML), Hindustan   Aeronautics   Limited   (HAL),   Indian   Railways   Construction Company Limited (IRCON), Rail India   Technical   and   Economic   Service Limited   (RITES),   Bharat   Electronics   Limited   (BEL),   Water   and   Power Consultancy  Services   Limited   (WAPCOS),   Goa   Shipyard   Limited   (GSL), Garden Reach Shipbuilders & Engineers Limited (GRSEL), Bharat Heavy Electricals Limited (BHEL), Power Grid Corporation of India Limited (PGCIL) etc.

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