New Delhi, India, July 23 (ANI): In line with its strategic focus on soft-power diplomacy, capacity building, and strengthening economic ties with partner nations across the Global South, India approved six development Lines of Credit (LoCs) totaling approximately Rs 17,550 crore over the past year, Minister of State for External Affairs Kirti Vardhan Singh informed the Rajya Sabha on Thursday.
Responding to a question in the Rajya Sabha regarding development partnership initiatives, MoS External Affairs Kirti Vardhan Singh stated that the concessional credit lines were extended across critical areas, including infrastructure and connectivity.
“During the last one year, six Lines of Credit have been approved for around 17,550 crores to partner countries. These Lines of Credit have been extended for financing various development projects in fields such as infrastructure, connectivity, social housing and mobility, health, agriculture, and procurement of essential commodities,” the minister said in a written response.
Extended under the Indian Development and Economic Assistance Scheme (IDEAS) through the Exim Bank of India, these concessional loans enable borrowing nations to develop critical infrastructure while creating opportunities for Indian project exports.
A Line of Credit (LoC) is a pre-sanctioned, flexible credit facility issued by financial institutions that allows borrowers to access funds up to a specified limit as required. Under this arrangement, interest is charged only on the amount drawn rather than the total approved limit, and the available credit is replenished as repayments are made.
Alongside concessional loans, India also sanctioned significant grant-based assistance during the same period. Highlighting this support, Singh said that around 60 projects valued at nearly Rs 4,500 crore received approval across various public interest and community development sectors.
“During the last one year, around 60 projects amounting to nearly 4,500 crores have been approved under grants in sectors such as education, agriculture, renewable energy, information technology, healthcare, digital public infrastructure, and connectivity,” Singh stated.
He added, “In addition, a number of Quick Impact Projects and High Impact Community Development Projects, as well as projects under plurilateral and multilateral frameworks, have been approved under grants.”
To ensure efficient implementation of these initiatives, the minister highlighted digital monitoring mechanisms and progress-tracking systems established for overseas projects.
“Suitable monitoring and review mechanisms have been put in place to ensure timely completion of development projects. Further, the New E-Tracking and Remote Administration (NETRA) Portal has been put in place since 2022 for management and monitoring of the Lines of Credit projects,” the response stated.
“Separately, Exim Bank of India undertakes impact assessment of completed Lines of Credit projects from time to time,” Singh added.
Outlining the guiding principles of India’s bilateral development assistance programmes, the minister emphasized a partner-centric approach.
“India’s model of development cooperation is demand-driven and is based on the needs and aspirations of partner countries,” Singh said.
Aligned with India’s “Neighbourhood First” policy and broader Global South outreach, these credit lines are aimed at deepening diplomatic and economic partnerships with nations across Asia, Africa, and other regions. (ANI)
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