Despite the Centre's reported reluctance, the Arunachal Pradesh government has asked it to continue seeking loans from the World Bank for projects in the border state in spite of objections from China.
Chief Minister Dorjee Khandu on Thursday said that during his recent visit to New Delhi, he came across press reports suggesting that the Centre has decided against pressing for loans from World Bank for various projects in Arunachal and instead mobilise internal resources for them.
"On seeing the press reports, I immediately rushed to Union Finance Minister Pranab Mukherjee on the evening of March 8 and told him it is okay for Central financial grants for developmental projects in Arunachal but we should also seek loans from the World Bank for the state. Otherwise it will give a wrong message," Khandu told reporters in Itanagar.
The controversy arose after External Affairs Minister S M Krishna reportedly said that if India can find internal resources to take up those projects in Arunachal, there is no compulsion to go to the World Bank or other funding agencies.
BJP spokesman Ravishankar Prasad had described Krishna's statement as a shift in the country's foreign policy.
The issue also had an echo in the Rajya Sabha on Wednesday when several BJP members including Prabhat Jha said such an attitude on the part of India would mean surrender of sovereignty.