The AAAD operation mainly deals with Sovereign External Aid extended by
funding agencies/institutions to the Government of India (GOI) for funding
various project activities in India. The main responsibility of AAAD is to co-
ordinate with all the agencies concerned and the donor and to maintain the
accounts of external aid flows.
In view of the above, the main operational process consists of disbursement,
repayment, accounting and reporting, value monitoring, data updation and
statistics. In each of these functions there are one or more sequential activities
involved. Since the grant/loan process from the external agency to the user
authority is with the objective to aid and support the project/user authority, the
flow of events is more or less same in most of the cases. However, there are
variations in the terms and conditions of agreements with the funding
Therefore, a varied style of handling the loan accounts is practised at AAAD.
Overall a computerised support system (Integrated Computerised System
called as ICS) is established to maintain the loan/grant accounts.
Since many of the activities are similar, the sequence also is treated as similar.
The entire set of external agencies is suitably grouped under four sections for
handling these cases separately. In other words, the activity sequence in one
of the sections may be nearly or fully identical with that of the other section
except for the name and source of the Donor.
As above, the operational variations between case to case of loan agreement is
an important matter and clearly known to the functional authority handling the
In line with the above description, in order to understand the general
operational flow of events, the following operational sequences are defined.
(These are typical in nature and vary slightly in actual performance style from
case to case).
The operational sequence followed at AAAD with respect to external
assistance is briefly discussed below.