IDI likely to get a different role

NEWDELHI: The finance ministry is likely to erase the role of promoting India as an investment destination from the mandate of India Development Initiative (IDI).

The fate of the IDI itself has been referred to the committee of secretaries on non plan expenditure. The changes will have to finally approved by finance minister P Chidambaram.

It is expected that IDI will now focus only on bringing all external aid programmes of the government under one umbrella, to promote market share for domestic companies in international markets.

The work of liasioning with the investment fraternity across the globe will be handled by the newly set up Investment Commission. Senior finance ministry officials said the track record of IDI in generating business for the domestic manufacturing sector has been impressive.

The programme has already been used to lend over $680 million to different countries in a time frame of slightly over one year. This compares very well with about $ 620 million spent by the centre in the past few decades.

IDI was launched by former finance minister Jaswant Singh as part of the NDA government’s initiative to promote India both as a production centre and an investment destination.