Bharat extends Rs 487.60 Crore line of credit to Mauritius for water pipeline replacement Project

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assistance is intended to fund a critical infrastructure project aimed at replacing approximately 100 kilometres of outdated water pipelines across the island nation.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 nations 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 nations.

The Ministry of External Affairs (MEA) of India formally announced the development, stating, “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 (IDEAS).”

According to the MEA, the project entails replacing around 100 kilometers 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 modernising the water distribution network, addressing both leaks and inefficiencies 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.

The MEA emphasised that this initiative underscores India’s long-standing commitment to fostering socio-economic development in countries across the Global South. “India’s development projects continue to be driven by the aspirations and needs of its partner countries,” the ministry stated, highlighting India’s role as a key player in promoting sustainable development in the region.

This Line of Credit is the latest in a series of collaborative projects between India and Mauritius, reinforcing the special relationship shared by the two countries. In recent years, India has been actively involved in several infrastructure and developmental projects in Mauritius, including the construction of hospitals, metro systems, and housing units, reflecting India’s strong commitment to the island nation’s growth and prosperity.

For Mauritius, the timely replacement of aging water pipelines is a critical priority, as the island’s water supply system has faced numerous challenges due to aging infrastructure. By modernising the system, the government hopes to reduce water wastage and improve access to clean water for its citizens, ensuring long-term sustainability.

India’s financial and technical assistance is part of a broader effort to support development projects that meet the evolving needs of its partner countries, particularly those in the Global South. The rupee-denominated Line of Credit is also seen as a step towards promoting the use of the Indian currency in international trade and project financing, further strengthening India’s economic footprint globally.