Mauritius, first recipient of Rupee loan under IDEAS of Govt.of India
Loan and Grant
4 min read
India has extended a line of credit (loan) of Rs 487.60 crores to the Government of Mauritius under the Government of India's Indian Development and Economic Assistance Scheme (IDEAS) programme.
It is the first time that India has extended a line of credit in Indian rupees to a foreign government under the IDEAS programme.
The loan offer was made to the Mauritius foreign minister Maneesh Gobin, by Indian External Affairs Minister Dr S . Jaishankar. The loan was approved after the Mauritius government accepted Dr Jaishankar’s offer.
SBI to Provide Loan to Mauritius
The Rs 487.60 crore line of credit to the government of Mauritius for financing a water project in Mauritius will be provided through the State Bank of India (SBI).
The loan amount will be used to replace around 100 km of obsolete water pipeline in Mauritius.
What is IDEAS?
The Indian Development and Economic Assistance Scheme (IDEAS) was launched as India Development Initiative by the government of India. It was announced in the 2003-2004 budget speech by the then Finance Minister Jaswant Singh with an allocation of Rs 200 crore.
It was later renamed the Indian Development and Economic Assistance Scheme (IDEAS).
Aim of the IDEAS
- Under IDEAS, the government of India provides concessional loans or grants to developing countries in Asia, Africa, and Latin America for developmental or other projects.
- The aim is to promote India's strategic economic interest in the world.
- The repayment of loans is the responsibility of the borrowing country.
- The borrowing country must buy at least 75 % of the goods /services from India for the projects for which a loan has been provided under IDEAS.
Lending Bank
The loan will be channelled to the borrowing country under IDEAS through the Export-Import Bank of India (EXIM) bank/Public Sector Bank or any other financial agency nominated by the Union Ministry of Finance.
Who manages the IDEAS?
The IDEAS programme is administered by the Department of Economic Affairs, Union Ministry of Finance. However, loans are provided to foreign countries on the recommendation of the Ministry of External Affairs.
Also read: EAM Jaishankar inaugurates Maitree Udyan in Port Louis, Mauritius
Mauritius is an archipelago in the Indian Ocean near the eastern African coast and two-thirds of the country’s population are of Indian origin.
Capital: Port Louis
Currency: Mauritian Rupee
Prime Minister: Pravind Kumar Jugnauth
