*DEA writes to MHA, MEA for providing clearances to proposal
Mohinder Verma
JAMMU, June 27: Funding has remained a major issue for Chenab Water Supply Scheme, which was mooted half a decade back to meet the drinking water requirement of Greater Jammu City, as proposal about seeking financial assistance from Japan International Cooperation Agency (JICA) has yet not crossed the phase of obtaining clearances from different quarters. Now, Department of Economic Affairs (DEA) under Union Ministry of Finance has written to the Ministry of Home Affairs and Ministry of External Affairs to clear the proposal as per the Hand Book on Bilateral Development Assistance.
Official sources told EXCELSIOR that Chenab Water Supply Scheme was mooted by Omar Abdullah led State Government in the year 2012 in order to provide 450 million litre per day drinking water to Greater Jammu City. Accordingly, while chairing a high level meeting in the month of January 2012 the then Chief Minister gave nod for seeking funding from Asian Development Bank (ADB).
The Scheme was vigorously pursued with ADB by J&K Economic Reconstruction Agency (ERA) but the efforts failed to yield the desired results as in the year 2013 the Asian Development Bank made it clear to the concerned authorities of J&K that in the absence of Environment Impact Study it would not be possible for it to clear the proposal for funding, sources said.
Thereafter, the State Government started exploring other funding options and finally it was decided that ERA would approach Japan International Cooperation Agency (JICA). Accordingly, a proposal was submitted to the Union Government but the efforts in this regard have not yielded the results till date despite lapse of considerable period of time and proposal is still passing through the phase of obtaining necessary clearances before being vigorously pursued with JICA.
“The Department of Economic Affairs (DEA) has examined the proposal submitted by J&K ERA and has cleared it technically but is awaiting clearances from Ministry of External Affairs and Ministry of Home Affairs before taking up the proposal with JICA”, sources informed, adding “unless clearances of these Ministries are appended with the project proposal JICA is not going to show any seriousness in extending financial assistance”.
It is pertinent to mention here that as per Government of India (Allocation of Business) Rules, 1961 Department of Economic Affairs (DEA) in the Ministry of Finance acts as nodal department for all matters relating to loans, credits and grants from foreign countries, special agencies, nongovernmental foundations, agencies and voluntary bodies.
All Central Ministries/Departments, Central Public Enterprises and State Governments including their other organizations like urban local bodies and State Public Sector Enterprises are required to route their proposals through DEA for accessing external development assistance from bilateral and multilateral sources.
In response to a question, sources said that clearances from MEA and MHA are imperative keeping in view the Hand Book on Bilateral Development Assistance, which states: “In case of any proposal pertains to North-Eastern States and Jammu and Kashmir, the Project Implementing Agency shall obtain approval of MEA and MHA”.
Keeping this in view, the Department of Economic Affairs has written to both these Ministries asking their concerned authorities to expeditiously submit clearances from security and other angles so that project is taken up vigorously with the Japan International Cooperation Agency, sources said, adding “basically every foreign agency wants to be sure that it is providing financial assistance for those projects which don’t face any sort of problem. By obtaining clearances from all the necessary quarters they want to protect their assistance”, adding “special provisions about clearances in respect of project activities in North East and Jammu and Kashmir have been kept in Hand Book on Bilateral Development Assistance keeping in view prevailing security scenario in these parts of country”.
“Though the officers of J&K Economic Reconstruction Agency are confident of early sanctioning of funding by JICA yet no time-frame can be specified for the same keeping in view the lengthy process required to be followed. Moreover, serious discussions between Department of Economic Affairs and JICA have yet not begun”, sources said, adding “in this way funding has remained major issue for a scheme which was mooted over half a decade back”.
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