How Mauritius Will Spend India’s $500M Credit Line Offering
Indian prime minister Narendra Modi recently made a trip to Mauritius, signing five pacts and presenting a $500 million line of credit to the island nation, Press Trust of India (PTI) reported.
The majority of funding will go to infrastructure projects including those that benefit the ocean economy. The nations’ “strategic partnering,” Modi said is rooted in this sector of the economy as well as scientific and security cooperation.
“I was pleased to offer a concessional line of credit of USD 500 million for civil infrastructure projects for Mauritius. We intend to quickly build the petroleum storage and bunkering facility in Mauritius,” Modi said at the official pact signing which took place Wednesday, March 11.
According to PTI, Mauritius will supply India with information that will help taxation cooperation as India has agreed to make changes to the The India-Mauritius Double Taxation Avoidance Agreement (DTAA) — which under two sections allows some taxpayers to earn tax relief from India.
“We have taken the opportunity to review the issue of preferential trade agreement signed in August 2006 between the two countries to further enhance market access and have agreed on the way forward,” Mauritius’ prime minister Anerood Jugnauth said in the report.
“I appreciate that Prime Minister Modi and his government have agreed to redirect the Indian line of credit of USD 200 million initially meant for the light railway transit system to projects in the water and energy sector.”
Aside from the ocean economy, India and Mauritius will focus on development within air transportation, medicine, Mauritius’ mango importation from Indian, as well as cooperation as it relates to culture.
India will also continue to pour more resources into a second Mauritius cyber city, Press Trust of India reported.