India has extended a new Line of Credit (LoC) worth Rs 487.60 crore to the Government of Mauritius. This financial assistance is intended to fund a critical infrastructure project aimed at replacing approximately 100 kilometres of outdated water pipelines across the island nation. The initiative marks the first-ever rupee-denominated Line of Credit issued by India for project financing under the Indian Development and Economic Assistance Scheme (IDEAS).
The IDEAS initiative, which promotes developmental projects in partner countries through concessional loans, has now enabled Mauritius to address a longstanding issue with its aging water infrastructure. The project will be financed on concessional terms by the State Bank of India (SBI), making this venture not only financially sustainable for Mauritius but also deepening the economic ties between the two countries.
The Ministry of External Affairs (MEA) of India formally announced the development, saying, ‘India has extended a new Line of Credit for INR 487.60 Crores to the Government of Mauritius for financing of a water pipeline replacement project. This is the first-ever Rupee denominated Line of Credit to have been extended by India for project financing to any country under the Indian Development and Economic Assistance Scheme’.
According to the MEA, the project entails replacing around 100 kilometres of obsolete water pipelines in Mauritius, which will significantly enhance the water supply infrastructure and improve the quality of life for residents. The project is a crucial step in modernizing the water distribution network, addressing both leaks in the existing system.
External Affairs Minister S Jaishankar had formally offered the Line of Credit during a recent meeting with Mauritius Minister of Agro-Industry and Food Security, Maneesh Gobin. The Mauritian government has now accepted the offer, and the project is set to move forward.
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