PM Modi government mulls funding for NGOs by US govt-run MCC

NEW DELHI: Amid the ongoing row over private foreign funding of non-governmental organisations in India, the Narendra Modi government has explored the possibility of receiving funds from United States governmentrun Millennium Challenge Corporation (MCC) for domestic civil society groups for socio-economic projects. This will ensure an oversight mechanism and prevent funds from alleged “misuse”, officials said.

Foreign secretary S Jaishankar met Dana J Hyde, chief executive of MCC during his trip to the US last month and discussed the possibility of funding by this state-run body for interested NGOs in India, people familiar with the matter said.

The discussion was part of efforts by the external affairs ministry to address concerns expressed by the Barack Obama administration and the US Embassy over clampdown on private organisations such as Ford Foundation, a senior official said. MCC was created by the US Congress in January 2004 with strong bipartisan support for supporting economic and good governance projects in various countries.

The corporation, which supports projects in various African and Central American countries, has not yet funded any project in India. The corporation’s board of directors is composed of the US secretary of state, the secretary of treasury, the US trade representative, the administrator of USAID, chief executive of MCC and four private sector members appointed by the US President with the advice and consent of the US Senate.

The secretary of state is the chair of the board and the secretary of treasury is the vice chair. The external affairs ministry has been keen to address the sticking point in bilateral relations.

The people cited earlier said that a body like MCC, with its support from US State Department, can ensure that funds given to domestic NGOs are not “misused” if it decides to undertake projects in India. MCC has approved over $10 billion in programmes worldwide that support country-determined projects in sectors including agriculture and irrigation, transportation (roads, bridges, ports), water supply and sanitation, access to health, finance and enterprise development, and access to education.

The US Ambassador to India Richard Verma had raised the issue of clampdown on US NGOs with his Indian interlocutors.