The African Development Bank Act, 1983

Summary of The African Development Bank Act, 1983
Purpose
• To facilitate the operational framework of the African Development Bank within India, aligning with international agreements.
Key Provisions
1. Enactment Details
• Title: African Development Bank Act, 1983
• Jurisdiction: Applicable across India
• Effective Date: Notified by the Central Government
2. Definitions and Scope
• Agreement: International pact for the Bank’s establishment
• Bank: Refers to the African Development Bank
3. Financial Commitments
• India’s subscriptions and payments to be funded from the Consolidated Fund of India
• Provision for issuing special notes or obligations for payments
4. Role of Reserve Bank of India
• Designated as the custodian of the Bank’s Indian currency holdings
5. Legal Status and Privileges
• Incorporation of specific Agreement articles into Indian law, with defined exceptions
• Empowerment of the Central Government to update incorporated provisions
6. Regulatory Framework
• Authority granted to the Central Government to formulate implementing rules
7. Parliamentary Oversight
• Mandatory laying of notifications and rules before Parliament for review
Incorporated Provisions
• Specific articles from the Agreement are given legal force in India, with noted exceptions for certain duties and charges.
Operational Commencement
• The Act’s operational commencement date is determined by a Central Government notification.

Legislative History:

The African Development Bank Act, 1983

Act Title - The African Development Bank Act, 1983

Act Number/Year - 13 of 1983

Act ID (India Code) - 198313

Presidential Assent Date - May 26, 1983

Enforcement Date - December 15, 1983

Nodal Ministry - Ministry of Finance

Precedent & Historical Rationale

1. Expansion of Multilateral Economic Engagement with Africa:

o In furtherance of India's long-standing diplomatic and economic policy of fostering South-South cooperation, India sought to deepen its multilateral partnership with the African continent by acquiring membership in the African Development Bank (AfDB).

o Following the opening of the AfDB's capital stock to non-regional member countries, India's formal participation allowed it to contribute to regional development projects, boost economic diplomacy, and facilitate commercial and industrial opportunities for Indian enterprises in Africa.

2. Statutory Authorization for International Capital Subscriptions:

o Under constitutional and public finance norms, India's financial obligations—including capital subscriptions to the shares of the African Development Bank, the creation of promissory notes, and the conferral of legal immunities, exemptions, and privileges to the Bank and its personnel—require specific parliamentary enactment.

Parliamentary Trajectory & Enactment

• Formulation:

Drafted by the Ministry of Finance to implement the agreement establishing the African Development Bank under Indian domestic law and to authorize financial withdrawals from the Consolidated Fund of India.

• Parliamentary Passage:

Introduced, deliberated, and passed by both Houses of Parliament (Lok Sabha and Rajya Sabha) during the budget session of 1983.

• Presidential Assent: Received Presidential Assent on May 13, 1983.

• Enforcement: Enforced on August 16, 1983.

Source: Official Records of Parliament, India Code, and Ministry of Finance (Department of Economic Affairs).