Denmark, Sternberg says, is willing to offer soft loans through its funding agency IFU even to private sector projects that are promoted by Indo-Danish joint venture companies in India. Though a flexible financial partner, IFU generally prefers to contribute equity and also take a board membership along with the Danish promoter.

Reiterating that the grant-based developmental assistance provided by Danida will be phased out in 2008, Sternberg says: "In case of poverty alleviation programmes, the projects should be approved by OECD and should be bid on a competitive basis."

India is a major beneficiary of Danida assistance and last year it got a grant of DKK 150 million. The current year grant will also be in the same region. A major portion of the grant is spent on health-related projects implemented in Tamil Nadu, Karnataka, Madhya Pradesh, Orissa and Chattisgarh.

He expects trade to further bloom between these two nations after Denmark assumes the chairmanship of the European Union (EU) in July 2002. Sternberg says Prime Minister A B Vajpayee is expected to lead a large Indian contingent to the EU India Summit to be held in Copenhagen, Denmark, this October. A parallel business summit is also scheduled which is expected to attract around 350 Indian corporate chieftains.

"We can assist India in setting up grain storage units, windmills and other industries," he says. Currently the trade balance between the two countries is in favour of India. "Exports from India is around Rs 9 billion while Denmarks export to India is around Rs 6 billion."

About Denmarks agenda for the EU during its chairmanship, Sternberg says: "The main function will be to decide on admitting other countries that have applied for EU membership." The EU is now trying to become a strong trade-block. Each country is liberalising its visa regulations and are ready to permit free movement of labour and capital.

About the impact of the 9/11 incidents in the US, he says after the initial slowdown business visits have come to normalcy.