India Launches First Rupee-Denominated Line of Credit Under IDEAS
India has extended a Line of Credit (LOC) worth ₹487.60 crore to Mauritius for a water pipeline replacement project. This marks India’s first-ever Rupee-denominated LOC under the Indian Development and Economic Assistance Scheme (IDEAS). The project will replace approximately 100 km of outdated water pipelines in Mauritius.
The State Bank of India will finance the LOC on concessional terms, supporting Mauritius in modernizing its water infrastructure. India’s External Affairs Minister, Dr. S. Jaishankar, made the formal offer during discussions with Mauritius’ Attorney General, Mr. Maneesh Gobin. The Government of Mauritius has accepted the offer, signaling their approval of the project.
This LOC reflects India’s commitment to strengthening its ties with Mauritius and enhancing socio-economic development in the Global South. By extending this credit, India aims to support key infrastructure improvements in partner countries, aligning with their development needs.
India has long supported development initiatives across Africa, Asia, and other regions through concessional financing and technical assistance. This latest LOC further demonstrates India’s focus on building sustainable partnerships through projects that address critical needs like water supply. The decision to extend the credit in Rupees is also significant, reinforcing India’s efforts to internationalize its currency and promote the use of the Rupee in global trade.
India’s development projects are driven by the aspirations of partner countries, ensuring that solutions meet local needs. The pipeline replacement project in Mauritius will not only improve water infrastructure but also strengthen the ties between the two nations.
This step reaffirms India’s long-standing commitment to fostering socio-economic development in the Global South, contributing to sustainable growth in partner nations. Through IDEAS, India continues to offer meaningful support to its global partners, focusing on mutual benefits and shared progress.
