The Cabinet Committee on Economic Affairs on 18 November 2015 approved extension of Indian Development and Economic Assistance Scheme (IDEAS) for five years from 2015-16 to 2019-20.
The extension was approved by the Prime Minister-headed CCEA in view of continued relevance of the scheme.
During the extended period, about 3771 crore rupees will be utilized as part of the scheme.
In fact, it was the second extension since its inception in 2005-06. The first extension was granted in 2009-2010 for five years.
Features of IDEAS
• It attempts to promote India's strategic political and economic interest abroad by positioning it as an emerging economic power, investor country and partner for developing countries.
• The fund is towards payment of Interest Equalization Support on Line of Credits (LoCs) to the lending bank.
• The Ministry of External Affairs (MEA) forwards the proposals for LoC to the Department of Economic Affairs (DEA) of the Ministry of Finance.
• The LoC will be operated through Export Import Bank of India or any other willing bank/ lending agency decided with the approval of Finance Minister.
• The lending bank will raise resources from the market to finance the LoCs and the Union Government will provide the Interest Equalisation Support (IES) and further guarantee to the lending bank.
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When: 18 November 2015