Home Economy India to finance ‘sensitive’ areas’ projects itself: Krishna

India to finance ‘sensitive’ areas’ projects itself: Krishna


New Delhi: After clashing with China at Asian Development Bank (ADB) over funding for a project in Arunachal Pradesh, India has decided not to approach international agencies to finance schemes in “sensitive” areas, External Affairs Minister S.M. Krishna said Monday.

“It is a conscious decision taken by government of India that all projects in sensitive areas will be funded by our own internal resources,” Krishna told reporters on the sidelines of a function to launch a website on India-Africa relations.

He said India will then “not have to put (its) palm (before) multilateral agencies to fund these projects”.

Krishna said that decision was reached as there is “always an element of uncertainty with regards to international funding”. “Whereas, if it is element of internal funding, there is certainty,” he said.

His remarks come in the background of China raising objections to ADB funding for Arunachal Pradesh’s flood management project.

Krishna had told parliament July that China’s objection had been in clear violation of the charter of the multilateral lending agency.