Chapter 22SAUDI ARABIA
22.1 In September, 1974, under a Royal Decree the Saudi Fund for Development was set up as an autonomous organisation with their own legal entity and autonomous financial status with the objective of financing, by way of loan for development projects in the developing countries.
22.2 India received its first loan of Saudi Riyals 353 Million (US$ 100 Million) in June, 1977 for the Srisailam and Nagarjunasagar Power Projects in Andhra Pradesh. Second loan of Saudi Riyal of 100 million was extended for Koelkaro Hydro Electric Project. However, this loan was subsequently cancelled as the project implementation was not picking up due to various local problems. Since then the Fund have extended loans for 3 more projects namely; Koraput Rayagada Railway Line project (SR 103.2 million) and Ramagundam Thermal Power Project Stage-II (S.R. 172 million in May, 1985) and for Nhava Sheva Port Project (Jawahar Lal Nehru Port Trust Project (S.R. 141 Million).
22.3 The total commitments made by the Saudi Fund at the end of March 1999 totalled Saudi Riyals 766.64 million. Out of this, Saudi Riyals 625.418 million have been utilised by the end of 1998-99.
22.4 The details of loans are given in Annexure-I.