400cr rupees fine to Indian central government

400cr rupees fine to Indian central government

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Indian central government paid 400cr rupees as fine to Asian development bank, japan, Germany and international bank for reconstruction and development (I.B.R.D) for unspent external loan as a commitment charge.

Japan and Asian development bank got more profit by this mistake. This information has given by a CAG report of 2014-15. CAG pointed this mistake in its report. Cag report showing that more than 110cr rupees has been paid as a commitment charge in last one year by the NDA government.

Commitment charge is a charge or fine for unused amount of loan which takes by anyone. According to report of CAG loan has given on the normal interest and conditions but if we add the commitments charge also, it will be more expensive than the normal market loans.

India has burden of 3.66 lakh crore in which 65% (2.37 lakh crore) is unutilized committed loan. In recent reports of finance ministry, India had paid more than 1400 cr rupees as commitment charge form1991 to 2009.

CAG also pointed those department where loan took by government did not used by those department or facilities for those departments. In this case the ministry of urban development is on number first. Ministry of urban development has more unused amount then other departments or ministries.

This is the amount of 33,700 crore rupees. After that atomic energy amount is 31,300 crore, road transport amount is 29,500 crore rupees, power amount 28,500 crore rupees, railway amount is 25,100 crore rupees, water supply extension amount is 14,900 crore rupees.

CAG pointed a question mark on Modi government:

CAG pointed a question mark on the ability of Modi government in the matter of use of funds of loan. According to CAG unutilized amount of 2011-12 was 1, 76,090 crore, which has become 2, 36,882 crore by 2013-14 and become 2, 37,012 crore increasing by next year.

This report shows that Modi government not performing well in using the amount which gets as a loan from outer sources. CAG also put a question on the decision of Modi government where they show the commitment charge interest obligation.