India spreading prosperity to poorer nations: FM

New Delhi, June 20 (UNI) Finance Minister P Chidambaram today avowed India's solemn commitment of doing more for poorer nations in view of its growing stature in the comity of nations and phenomenal economic growth.

"India should engage with many more developing countries and sectors for Development Cooperation Assistance (DCA) to enhance her strategic and commercial interests and to help poorer nations in their development efforts," Mr Chidambaram said while addressing the Parliamentary Consultative Committee attached to his Ministry.

With a sense of pride, the Finance Minister said India was fast emerging as the promoter of economic growth to many developing countries.

Mr Chidambaram said not only the inhabitiants of the donee country, but also the people of Indian origin living in these countries get the benefit of DCA.

The Finance Minister said that in view of the country's growing stature in international affairs there was need to increase aid to poor countries.

The Finance Minister noted that in the Budget for 2007-08, he had proposed the establishment of India International Development Cooperation Agency in which Ministries of External Affairs and Commerce, apart from Finance Ministry, would be represented.

Mr Chidambaram said that DCA was an emerging, developing and evolving programme which was attractive because of the interest subsidy that was provided by the Government by way of lines of credit extended by Exim Bank of India.

Mr Chidambaram said India provides lines of credit to friendly developing foreign countries. This, however, also helps the Indian companies to promote exports of their goods, including project exports, to the donee countries. But above all it secures goodwill of the beneficiary countries.

Moreover, Indian companies participate in executing many projects, such as those pertaining to Railways, Information Technology, Power generation and transmission, buses, sugar mills and agriculture.

He said the DCA was divided into two categories, that is, Government to Government LOC and the Lines of credit through Exim Bank.

Mr Chidambaram informed the members that till now 67 Government of India supported LOCs through Exim Bank of India for 2,772 million dollars have been approved.

The Finance Minister listed the countries which have benefited from India's development assistance: Afghanistan, Angola, Djibouti, Burkina Faso, Cambodia, Chad, Congo, Cote d' Ivoire, Ethiopia, Equatorial Guinea, Fiji, Gambia, Ghana, Guyana, Guinea Bissau, Honduras, Jamaica, Lao PDR, Mali, Mauritius, Mozambique, Myanmar, Nepal, Niger, Senegal, Sri Lanka, Sudan, Suriname, Vietnam and Zambia.

These LOCs include special initiatives like New Partnership of African Development (NEPAD) of Africa, TEAM-9 initiative of India and ASEAN initiative. Besides, a technical cooperation agreement was drawn up between Government of India and African Development for giving grant for financing consultancy services, training and other techno-economic activities.

The Finance Minister said that NEPAD was a special international initiative which seeks long term economic development of the region.

India has pledged 200 million dollars for this initiative. So far, six proposals of lines of credit involving a total amount of 122.77 million dolars to various African countries have already been approved under the NEPAD initiative. Eight proposals collectively amounting to 261.77 million dollars for funding various projects in the member countries of TEAM-9 by way of Exim Bank of India lines of credit have been approved.

Under the ASEAN initiative, 5 proposals amounting to 152.34 million dollars to three countries in 2006-07 have been made.

In reply to a question, Mr Chidambaram said that while deciding the DCA, the government takes into account the need and capacity of the donee countries and the requests are recommended by the Ministry of External Affairs. "In some cases, they directly approach us for the assistance", he said.

The Meeting was also attended by the Minister of State for Finance Pawan Kumar Bansal and senior officers in the Ministry of Finance.

Members of the Committee who took part in the proceedings included -- L Rajagopal, K V Thangka Balu, Jivabhai A Patel, Vijaya Kumar Khandelwal, Lakshman Singh, Angadi Suresh Chanabasappa, Pusp Jain, Dr C Krishnan, Mohammad Salim, D K Adikesavulu, Gireesh Kumar Sanghi, A Vijayaraghavan and Amar Singh.

UNI