Rule 264 — GFR

Rule 264 (1) Implementation of Projects or Schemes through external aid receipt. The projects or schemes of the Government of India to be implemented through external aid receipt from multilateral or bilateral funding agencies shall be shown in the budget proposals approved annually by the Parliament.

Rule 264 (2) The external aid comes from bilateral and multilateral sources as follows:

(i) Bilateral funding to finance specific project

(s) by the funding agency(ies) under Government- to-Government agreement(s); and,

(ii) Multi-lateral funding by Multi- Lateral Funding Agencies, such as the World Bank under agreement

(s) between the borrower (Government of India) and the Multilateral Funding Agency(ies).

Rule 264 (3) The Department of Economic Affairs, Ministry of Finance as the nodal agency shall execute the legal agreement for loans or grants from external funding Agency(ies). However, grant agreements for Technical Assistance can also be executed by the beneficiary Ministries or Departments with the approval of Ministry of Finance, Department of Economic Affairs.

Rule 264 (4) The Office of the Controller of Aid Accounts and Audit (CAAA) in the Department of Economic Affairs, Ministry of Finance shall be responsible for implementing the financial covenants laid down in the agreement

(s) executed by Department

(s) of Government of India and the External Funding Agency(ies). A copy of all such agreements shall be sent to the Office of Controller, Aid Accounts and Audit, Department of Economic Affairs for this purpose.