(a) whether a sizeable level of foreign financial assistance remain unutilized;
(b) if so, the details thereof alongwith the reasons for non utilization of such assistance,
sector-wise;
(c) the details of commitment charges paid to various foreign agencies as a result of non
utilization of such foreign assistance during the last three years; and
(d) the steps taken by the Government for timely utilization of such assistance?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a),(b)&(d) A total amount of Rs 61,023.70 crores committed as foreign loan assistance on
Government account, was not drawn as on 31st March, 2006. However, utilization of the
sanctioned foreign assistance for any project is a continuous process spread over its
implementation period. As a result, there would be some unutilized amount at any point of
time; these amounts will be utilized as the Project implementation progresses. Moreover,
the project implementation authorities like the Central Line Ministries / Departments, State
Governments work under diverse constraints. Some of the steps taken by the Government to
improve aid utilization are ensuring adequate provisioning for externally aided projects in
the budgets of the State and Central Government, streamlining of procurement procedures,
disintermediation of the flow of external aid to Central Public Sector Undertakings,
strengthening of Project Monitoring Units in some States and Central Ministries, appointment
of Nodal Officers for the States and regular review of projects etc. Sector wise details of
foreign loan assistance remaining unutilized as on 31.03.06 are at Statement-I.
(c) Details of the commitment charges paid to various foreign agencies as a result of
non-utilization of the foreign assistance during the last three years are at Statement-II.
Statement-I
Statement referred to in reply to part (b) of Lok Sabha Unstarred Question No. 3272 dated
12th May 2006 regarding utilization of Foreign Financial Assistance
Unutilized balance of foreign loans as on 31.03.06
(Figures in Rs. Crore) Sector Unutilized balance of foreign loans as on 31.03.06
Agriculture and Rural Development 3493.78 Energy 13651.59 Environment & Forests 2073.26 Fertilizers 0.62 Health 1181.61 Industry and Finance 85.23 Infrastructure 19485.48 Social 2812.65 Structural adjustments 156.21 Urban Development 9770.16 Water resources management 6292.26 Water supply and management 309.57 Others 3784.56
(Figures in Rs. Crore) Development partner 2003-04 2004-05 2005-06
Germany 8.99 2.07 1.85 France 0.021 0.00 0.00 Asian Development Bank 38.22 45.10 53.42 IBRD 40.18 36.11 35.7 IDA 5.72 81.82 57.17