According to an internal assessment of the finance ministry, many of its past projects are running far behind schedule to the extent that the government has been paying commitment charges of several hundred crores every year. At the same time India is negotiating more loans from the World Bank to fund infrastructure development and to upgrade urban transport.
India paid Rs 240 crore as commitment charges for the nondisbursed portion of sanctioned loans to World Bank and other multilateral agencies such as Asian Development Bank (ADB) and some bilateral donors in 2007-08 and 2008-09 alone.
In the five years between 2004-05 and 2008-09, the government paid around Rs 700 crore as commitment charges.
An approximation of such expenditure since 1991 puts the figure above Rs 1,400 crore.
According to the finance ministry sources, till last year, there were 231 externally aided projects of which more than 40% were paying commitment charges.
In addition, review of the ADB portfolio showed undisbursed loan amount increased from $850 million in 1999 to $3.5 billion at the end of 2006.
India paid Rs 240 crore as commitment charges for the nondisbursed portion of sanctioned loans to World Bank and other multilateral agencies such as Asian Development Bank (ADB) and some bilateral donors in 2007-08 and 2008-09 alone.
In the five years between 2004-05 and 2008-09, the government paid around Rs 700 crore as commitment charges.
An approximation of such expenditure since 1991 puts the figure above Rs 1,400 crore.
According to the finance ministry sources, till last year, there were 231 externally aided projects of which more than 40% were paying commitment charges.
In addition, review of the ADB portfolio showed undisbursed loan amount increased from $850 million in 1999 to $3.5 billion at the end of 2006.
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