The Fortieth Meeting of the Executive Committee decided:
(a) to approve, in principle, the total funding of US $52 million to support the implementation of the India CTC phase-out plan for both the consumption and production sectors. This was the total funding that would be made available to India from the Multilateral Fund for the total elimination of the CTC production and consumption controlled by the Montreal Protocol, and it was mutually agreed that no additional Multilateral Fund resources would be forthcoming for any additional activities related to phase-out of consumption and production of CTC in India;
(b) to provide the agreed level of funding in installments with the understanding that US $30 million would be paid out during the 2003 – 2005 triennium, and the balance would be released during the next triennium;
(c) to release the first tranche of US $5 million and associated agency support costs at the 40th Meeting of the Executive Committee in order to enable India to proceed with implementation of its CTC phase-out plan with the understanding that priority of funding would be given to the consumption sector;
(d) to provide India with maximum flexibility in using the agreed funds to meet the production and consumption targets set forth in the project documents submitted to the 40th Meeting of the Executive Committee and the report required in subparagraph (f) below;
(e) to request the Government of India, together with the bilateral donors Japan, Germany, and France, the World Bank as the lead Implementing Agency, and in consultation with the Secretariat as well as cooperating agencies, namely UNIDO and UNEP, to prepare a detailed agreement for the implementation of this CTC phase-out plan and a 2004 annual work programme for consideration at the 41st Meeting of the Executive Committee;
(f) also, to request India and the World Bank to provide a report addressing the discrepancy related to the level of CTC imports to the 41st Meeting of the Executive Committee. In that regard, if it was found that the actual import of CTC in 2001 was over 10 per cent lower than the 24,661 MT figure as reported in the project documents, the US $52 million referred to in subparagraph (a) would be reduced by a sum equivalent to the difference of tonnes between the 24,661 MT figure and the actual import figure on the basis of US $2,000 per tonne;
(g) to take note of the fact that India considered the use of CTC in the production of DV acid chloride to be a feedstock use. If either India or the Parties ever reclassified that use or any other feedstock use to a controlled status, India agreed that it would phase-out that use with no compensation from the Fund.
(UNEP/OzL.Pro/ExCom/40/50, Decision 40/54, para.. 107(a–g)).
The Forty-first Meeting of the Executive Committee decided to approve the CTC sector Agreement in India, contained in Annex XII.27 to the present report.
(UNEP/OzL.Pro/ExCom/41/87, Decision 41/95, para. 152(c)).
(Supporting document: UNEP/OzL.Pro/ExCom/41/36).