HoDs asked to follow guidelines on foreign aids
Source: Hueiyen News Service

Imphal, May 15, 2013: Taking serious note on violation of guidelines for availing financial assistance from foreign agencies, the State Government has strictly instructed all heads of departments (HoDs) to follow the prescribed guidelines while availing funds from foreign agencies for any project taken up in the State.

As a rule, foreign funds are channelized into the State through the Department of Economic Affairs and State Chief Secretary or the State Planning Secretary.

The State Government has decided not to tolerate any official who tries to approach the foreign agencies directly for availing financial assistance instead of going through the prescribed official channel.

Chief Secretary DS Poonia has recently issued an office memorandum in this regard.

According to the office memorandum, the State Planning Department is the nodal department for the implementation of Externally Aided Projects (EAP) and so all EAP proposals are made by the administrative departments through the Planning Department.

The Chief Secretary, DS Poonia ,who is also the Chairman of Foreign Investment Board (FIB), is the competent authority for appraisal of all EAP proposals and he would submit the proposals to Department of Economic Affairs, Ministry of Finance in case of any financial or technical assistance.

In violation of the existing guidelines framed by Department of Economic Affairs, some senior officials have reportedly approached international agencies like World Bank, Asian Development Bank, Japan International Corporation and others for availing financial aids for the State.

Recently, a senior administrative secretary reportedly met a team of officials from Asian Development Bank at Imphal without any clearance from the Department of Economic Affairs.

However, the State Planning Department has denied organizing such meeting in future and further directed the officials to refrain from having unilateral talks with the foreign agencies.

The office memorandum also clearly mentioned that the administrative departments are not authorized to approach the foreign agencies directly for financial aids without the consent of the Planning Department.

Meanwhile, a letter sent to the State Government by Additional Secretary of Department of Economic Affairs, Union Ministry of Finance Shaktikanta Das has stated that Department of Economic Affairs acts as the nodal department of Government of India for the implementation of Externally Aided Projects.

The Department implements the EAPs according to needs and priorities of the States.

It also facilitates the States to communicate with various Ministries with regard to the project proposals.

Department of Economic Affairs is responsible for organizing all training programmes related to EAPs.

No other government agency can send the EAP proposals on its own.

Accordingly, the Additional Secretary of Department of Economic Affairs has strictly instructed the State officials to refrain from making direct approaches to the foreign agencies for availing technical or financial assistance without the consent of the nodal department.

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