Chapter 26

UNITED KINGDOM

 

26.1 The Government of UK has been providing bilateral assistance to India since 1958. Such assistance was in the form of loans upto 1975 and thereafter in the form of grants. Bilateral assistance from UK to India is governed by a cash disbursement ceiling which is decided on the basis of expenditure likely to be incurred on the projects agreed by UK for each financial year. The actual drawal through the Government of India budget during 1997-98 was Pound 31.817 million. The drawal during 1998-99 was around Pound 43.000 million.

26.2 Apart from the Bilateral aid programme, the Government of UK also provides for selected projects, additional tied grants known as Aid & Trade Provision(ATP). Such tied grants are available for projects of special interest to UK and covers only a part (about 35%) of the UK goods and services. Such grants have been provided by UK Government for projects like Rihan STPS Phase-I,(Pound 17 Million), Amlori Coal Mines (Pound 15 million), Balco Captive Power Plant, UAE sub-marine cable and HBJ pipeline Gas Turbine Compressors.

26.3 The major projects being financed under UK Aid are ::

(Pound in million)

Projects

Tied Costs

Local Costs

Total

Calcutta Slum Improvement Project phase. IC

-

2.352

2.352

Western Ghats Forestry Project

-

18.070

18.070

Andhra Pradesh Energy Efficiency Project Grant 1994

42.700

-

42.700

Eastern India Rainfed Farming Project Grant, 1995

6.631

-

6.631

Cuttack Urban Services Improvement project

-

11.490

11.490

Orissa Power Sector Reform

42.500

-

42.500

Orissa Family Welfare Project (Ph.III)

-

1.748

1.748

Polio Eradication Project

-

47.500

47.500

Andhra Pradesh District Primary Education programme

-

42.500

42.500

West Bengal District Primary Education programme

-

37.700

37.700

Cochin Habitat Improvement Project

-

11.469

11.469

Karnataka Watershed Development Project

-

4.489

4.489

Western India Rain Fed Forming Project(Phase II)

-

15.090

15.090

26.4 Technical Assistance : UK has been providing technical assistance in the form of experts services, training fellowships and ancillary equipment for scientific research and allied purposes. Technical assistance has been provided in the fields of science, industry and technology, agriculture, power, health, coal, education and environment. In the recent years expenditure on technical cooperation has been rising significantly and U.K. has indicated limit of Pound 30 million in any given year on Technical Cooperation.

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