Chapter 24

SWITZERLAND

 

24.1 The Government of Switzerland has been giving economic assistance to India since 1960. The total assistance excluding grants given upto 31.03.99 has been of the order of approx. SFR 311.753 million, details of which are given below:

(Sw. Fr. Million)

First Transfer Credit

123.640

Second Transfer Credit 1966

30.827

Third Transfer Credit 1973

37.286

Swiss Mixed Credit 1983

60.000

Swiss Mixed Financing 1991

60.000

TOTAL

311.753

 

24.2 Swiss assistance includes a mixed credit line for CG imports and local cost grants. The latter are channelled through the Swiss Agency for Development and Cooperation (SDC) with the objectives of improving the living conditions of the rural population and the weaker sections of the society. The Sectoral priorities of the SDC’s programme in India are:-

  1. Improved land use

  2. Dairy farming and livestock production

  3. Rural cottage industry

  4. Human resources development and research.

  5. Environment and Renewable Sources of Energy.

24.3 Agreements for projects totalling Rs.39.179 crores were signed during 1996-97. During 1997-98 agreements totalling Rs.37.20 crores were signed. During 1998-99 only one T.C grant project-Meat Sector in Kerala - for Rs 45 lakhs was signed.

24.4 An agreement for Swiss Mixed Financing for the import of Capital Goods and the supply of services and also the financing of fees for know-how of Swiss origin was signed on 24.6.91 for SFR 100 million. Under this credit 40% is a grant from the Swiss Government and 60% as export credit carrying an interest of 0.5% over the Swiss Export Base Rate and an annualised ERG (Export Risk Guarantee) added to the interest payable by Government of India with repayment of 12 years and the grace period being 3 years. The validity of the extended term will expire in June 1998.

24.5 The details of loans and grants are given in Annexure I & II respectively.