Lok Sabha Question No. 343 (STARRED), answered on 2015-12-23
Subject: Aid by Britain
Ministry: EXTERNAL AFFAIRS
Asked by: SUMEDHANAND SARASWATI

## GOVERNMENT OF INDIA

## MINISTRY OF EXTERNAL AFFAIRS

## LOK SABHA STARRED QUESTION NO.343 TO BE ANSWERED ON 23.12.2015

## AID BY BRITAIN

- *343. SHRI SUMEDHANAND SARSWATI:

Will the Minister of External Affairs be pleased to state:

- (a) whether the Government is aware that Britain's traditional aid programmes to India for various projects are likely to end by December, 2015;
- (b) if  so,  the  reasons  therefor  and  the  aid  provided  by  Britain during the last three years including the current year;
- (c) the  major  projects  and  programmes  likely  to  be  adversely affected by the said move;
- (d) whether  efforts  have  been  made/are  being  made  by  the Government  to  restore  the  said  financial  aid  to  India  by Britain; and
- (e) if so, the details and outcome thereof?

## ANSWER THE MINISTER OF EXTERNAL AFFAIRS (SHRIMATI SUSHMA SWARAJ)

- (a) to (e) A statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a)  TO  (e)  OF  THE LOK  SABHA  STARRED  QUESTION  NO.  343  REGARDING  'AID  BY BRITAIN' FOR ANSWER ON 23.12.2015

(a) & (b) The  Government  of  UK  announced  on  9  November  2012  that  its development  relationship  with  India  would  change  after  2015  and  will  move  from financial grant aid projects to technical assistance programmes. This was announced after  holding  consultations  with  India  on  giving  a  new  direction  to  the  bilateral development  partnership  after  2015.  It  was  agreed  that  the  existing  financial  grant projects will be completed responsibly as planned by 2015 and technical cooperation would  continue  by  sharing  skills  and  expertise  or  in  investments  in  private  sector projects. The new component Private Sector Development Initiative (PSDI) introduced in 2011 to promote private sector investment in eight low income States of the  Country  (viz.  Madhya  Pradesh,  Odisha,  Bihar,  West  Bengal,  Chhattisgarh, Jharkhand, Uttar Pradesh and Rajasthan) will also continue.

UK Department  for  International  development  (DFID)'s  India  specific  plan was for the period 2008-2015. During the first phase of DFID's Operational Plan for India  (i.e.  2008-09  to  2010-11),  commitment  of  £825  million  (approximately  INR 8,000  Crores)  was  fully  utilized.  UK  Government  through  DFID  has  provided  the following  financial  aid  for  the  Government  sector  programmes  during  the  period 2013-14 , 2014-15 and 2015-16 (up to 18/12/2015).

(INR Crore)

|   2013-14 |   2014-15 |   2015-16 |
|-----------|-----------|-----------|
|    855.01 |    601.77 |    190.06 |

(c) Presently,  there  are  26  Government  sector  projects/programmes  with  DFID assistance at the Centre and in the States of Madhya Pradesh, Odisha, West Bengal and  Bihar.  These  projects  are  primarily  in  the  areas  of  health,  education,  urban reforms, governance reforms etc. Over 89% of the Financial Assistance committed by DFID for these projects has already been utilized. The unutilized funds under DFID's commitment for financial assistance projects are in the process of being reallocated to Technical Assistance programmes. Such reallocation of funds from Financial Assistance  projects  to  Technical  Assistance  programmes  will  not  require  change  in the  Detailed  Project  reports  (DPRs)  of  the  projects  and  the  reallocation  will  be effected through new Memorandum of Understandings (MoUs).

In the years 2014-15 and 2015-16, five new agreements have been signed for Technical Assistance projects in the areas of agricultural reforms, urban infrastructure, energy access etc.

(d) & (e) The development partnership between India and UK is under transition with  focus  shifting  from  Financial  Assistance  projects  to  Technical  Assistance programmes by sharing skills and expertise or investment in private sector projects. Technical cooperation will focus on policy cooperation and skills exchange in areas such  as  growth,  trade  and  investment,  education  and  skill  development,  health, governance, capacity  building,  monitoring  and  evaluation.  The  programmes  will  be implemented  in  consonance  with India's policies and guidelines on technical cooperation.

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