Govt extends IDEA scheme for 5 years
Tribune News Service
New Delhi, November 18
The Cabinet Committee on Economic Affairs (CCEA) has given its approval for second extension to the Indian Development and Economic Assistance Scheme (IDEAS).
India has been extending lines of credit to African and other developing countries under this Scheme since 2005-06. The first extension to the scheme was granted in 2009-2010.
Since the objectives of the scheme continue to be relevant, it has been decided to give second extension to the Scheme for another five years, 2015-16 to 2019-20.
The IDEA Scheme, with suitable modifications and amendments, will continue to be implemented through the Department of Economic Affairs (DEA) in the Ministry of Finance.
The LoC will be operated through Export Import Bank of India or any other willing bank decided with the approval of Finance Minister. The lending bank will raise resources from the market to finance the LoCs. The borrowing country shall provide sovereign guarantee to the lending bank.
According to an official statement, lines of credit form an important component of India’s diplomatic strategy and have been useful in generating goodwill and building long-term partnerships. The scheme also attempts to promote India’s strategic political and economic interest abroad by positioning it as an emerging economic power, investor country and partner for developing countries.
