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Introduction of VAT is a complex and difficult process and DFID was asked for technical assistance to help the Government of Andhra Pradesh ensure that they were ready to implement the new system by the original target date of April 2002.
International consultants have been utilised in designing the process in areas where local expertise was not available. They were selected through a competitive tendering exercise to ensure maximum value for money. Much of the assistance has been provided by Indian experts.
DFID has regularly monitored the project. The last annual review in December 2001 concluded that the project was completely on track, resulting in Andhra Pradesh being one of the few states in India ready for the target date. The Government of India has since decided to delay VAT implementation to April 2003 as many states were not ready.