Govt to set up single agency for aid to developing countries

New Delhi, Feb 28 (UNI) The government proposes to establish an India International Development Cooperation Agency (IIDCA), bringing under one umbrella all activities relating to India's assistance to developing countries.

Finance Minister P Chidambaram, while presenting Budget Proposals for 2007-08 in Lok Sabha today, said the Ministries of External Affairs, Finance and Commerce and other stake-holders will be represented in the IIDCA.

He said in his budget speech that in keeping with its growing stature in international affairs, India must willingly assume greater responsibility in promoting development in other developing countries.

At present, India extends development cooperation through a number of Ministries and agencies and the total sum is about one billion US Dollars per annum.

''It is felt that all activities relating to development cooperation should be brought under one umbrella. Accordingly, government proposes to establish the India International Development Cooperation Agency,'' the Finance Minister said.

According to the Budget Estimates for 2007-08 for the External Affairs Ministry, Rs 1768.55 crore have been allocated for assistance to other developing countries.

These include Rs 770.91 crore to Bhutan, up from Rs 599.51 crore last year, and Rs 138 crore to Nepal, which is less than last year's 210 crore.

Allocations for Bangladesh and Sri Lanka remain the same at Rs 15 crore and 28 crore respectively.

Maldives will have a more than double allocation at Rs 15 crore, up from last year's Rs six crore, Myanmar Rs 80.41 crore, up from last year's 44.57 crore, other developing countries Rs 651.23 crore, up from 591.63 crore in 2006-07, Central Asia Rs 20 crore against last year's 17 crore and African countries Rs 50 crore as against last year's 20 crore.

The total allocation for the External Affairs Ministry has gone up to Rs 4433.60 crore from last year's Rs 4095.05 crore.

UNI