The African Development Fund Act, 1982

Summary of The African Development Fund Act, 1982
Key Provisions
1. Short Title, Extent, and Commencement (Section 1)
• Titled as the African Development Fund Act, 1982.
• Extends to the whole of India.
• Commencement date to be notified.
2. Definitions (Section 2)
• "Agreement": Refers to the African Development Fund Agreement.
• "Fund": Refers to the African Development Fund established under the Agreement.
3. Payments to Fund (Section 3)
• Payments from the Consolidated Fund of India for:
• Subscription under Articles 6, 7, 8, and 9 of the Agreement.
• Sums under Article 13 of the Agreement.
• Charges under Article 16 of the Agreement.
• Option for the Central Government to create and issue non-interest bearing, non-negotiable notes or obligations as per Article 9 of the Agreement.
4. Reserve Bank as Depository (Section 4)
• The Reserve Bank of India is the depository for the Fund's Indian currency holdings.
5. Status, Immunities, Exemptions, and Privileges (Section 5)
• Provisions of the Agreement (specified in a Schedule, not fully provided in the context) have the force of law in India, with specific exceptions regarding duty exemptions and tax treatments.
• The Central Government may amend the Schedule to reflect any amendments to the Agreement's provisions.
6. Power to Make Rules (Section 6)
• The Central Government may make rules for carrying out the Act's purposes.

Legislative History:

The African Development Fund Act, 1982

● Act Title - The African Development Fund Act, 1982

● Act Number / Year - 1 of 1982

● Act ID (India Code) - 198201

● Presidential Assent Date - March 04, 1982

● Enforcement Date - August 25, 1986

● Nodal Ministry - Ministry of Finance

Precedent & Historical Rationale

● Accession to the African Development Fund Agreement - In 1972, an international agreement was established to constitute the African Development Fund (ADF) as the concessional lending arm of the African Development Bank Group, aimed at fostering economic and social development across African member states. India, seeking to expand South-South cooperation, deepen economic and technical partnerships with African nations, and contribute to international development finance, decided to become a non-regional state participant in the Fund.

● Statutory Authorization of Financial Contributions, Immunities, and Privileges - Formulated to implement the international Agreement establishing the African Development Fund and give effect to India’s participation therein. The Act statutorily authorized the Central Government to make initial and periodic subscription payments to the Fund out of the Consolidated Fund of India, issue non-negotiable, non-interest-bearing promissory notes in lieu of payments, and confer legal capacity, judicial immunities, exemptions from taxation, and privileges upon the Fund, its Governors, Directors, and personnel within the territory of India in accordance with the international treaty.

Parliamentary Trajectory & Enactment

● Formulation - Introduced by the Union Minister of Finance in Parliament to fulfill India's treaty obligations and provide domestic legislative sanction for financial contributions and diplomatic immunities relating to the African Development Fund.

● Parliamentary Passage - Introduced in the Lok Sabha, considered, and passed by both Houses of Parliament (Lok Sabha and Rajya Sabha) during the Winter Session of 1981 / early 1982.

● Presidential Assent - Received the assent of the President of India on March 04, 1982

● Enforcement - Enforced on August 25, 1986.

Sources - Official Records of the Governor General in Council, India Code, and Ministry of Finance.