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This is an archive article published on May 20, 1998

Some foreign-aided projects may not see light of day

May 19: Out of the 13 foreign-aided projects worth Rs 895 crore in various stages of implementation or negotiations in Himachal Pradesh, two...

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May 19: Out of the 13 foreign-aided projects worth Rs 895 crore in various stages of implementation or negotiations in Himachal Pradesh, two Rs 335-crore German-aided projects on expansion of irrigation facilities and strengthening of the health infrastructure, are likely to fall a casualty to the sanctions induced by the nuclear tests.

Though in advanced stages of negotiations, these may not see the light of day following Germany’s decision to freeze all development aid to India. Scheduled for implementation later this year, these projects involved German aid of Rs. 335.58 crore, but agreements were yet to be inked.

The two projects German agencies had agreed to fund are the Rs.73-crore irrigation and area development project and the Rs 262-crore health infrastructure project. The latter aimed at providing health infrastructure and training to health personnel. Another project worth Rs. 203 crore was also proposed for German assistance two years ago but it did not materialise.

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However, the 11 ongoing projects, five in the forestry sector, are unlikely to be affected by sanctions. “On these projects, more than 50 per cent of the committed money has been utilised and the rest is in the pipeline,” a senior government official told The Indian Express here today.

Inquiries made with the government revealed that projects worth Rs. 436 crore, including internationally funded and bilateral projects, were currently under implementation in the hill state and won’t be affected. The World Bank has been a major funding agency in these aided projects on forestry and education. The World Bank is also funding the prestigious 1500 MW Nathpa-Jhakri hydel project near Rampur while a new project on upgradation of the roads of economic and tourism importance was also in the pipeline.

In the forestry sector, major projects under implementation include the Rs 42-crore World Bank assisted Himalayan watershed development project (Kandi area). The project was supposed to have been executed in June, 1998 but the state government had asked for not only one year’s extension but also launching of the second phase to cover more areas for integrated micro-watershed management.

The World Bank is also funding the state government on a project for forestry, research education and extension. This also covers conservation of bio-diversity in the National Himalayan Park at Kullu. The project would continue till December 1999.

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The British ODA assisted Rs 55-crore forestry project will be completed in March, 2000 and the Rs 50-crore Indo-German changer project for afforestation and energy conservation measures in Kangra District would be implemented by March, 1999.

The World Bank had recently cleared a project on primary education in Himachal Pradesh which envisages construction of school buildings, women’s education and increasing enrollments in schools. The Rs. 130-crore project has taken off very well.

Another Rs 12-crore World Bank-aided project on upgradation and modernisation of technical education has also brought out significant changes in the technical education institutes of the government. The state government is also implementing Rs 28-crore Norad project to reduce environmental deterioration in the state. The World Bank assisted Rs. 188 crore project on strengthening of transmission and distribution network in the power sector is in an advanced stage of implementation.

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