In News:

• India has extended a ?487.60 crore Line of Credit (LoC) to Mauritius for financing a water pipeline replacement project.
• This initiative is part of the Indian Development and Economic Assistance Scheme (IDEAS), which supports developmental projects in partner countries through concessional loans.

About the IDEAS Scheme

• Origin: Launched in 2003-04 as the India Development Initiative, later renamed as IDEAS Scheme.
• Objective: To promote India’s political, economic, and strategic interests by providing developmental assistance to developing countries.
• Administering Body: The scheme is managed by the Ministry of External Affairs (MEA) with support from the Exim Bank.

Key Features of the IDEAS Scheme

• Lines of Credit (LoCs):
  • Provides LoCs to developing countries for funding projects in various sectors, including:
    • Infrastructure
    • Water supply
    • Education
    • Other key developmental areas.
• Project Recommendations:
  • Projects funded under the scheme are recommended by MEA and are aimed at bolstering socio-economic development in the partner countries.
• Concessional Financing:
  • The scheme offers concessional terms for the financing of these projects, reducing the financial burden on the recipient countries.
• Diplomatic and Strategic Benefits:
  • The IDEAS scheme strengthens India’s diplomatic ties and fosters goodwill with countries in the Global South.
• Focus on Development:
  • It aims to support key developmental goals in partner countries while advancing India's role as a leader in global development cooperation.

Significance

• The Mauritius water pipeline project is a part of the larger efforts under IDEAS to support infrastructure and socio-economic development in partner nations, helping to improve the quality of life and fostering closer bilateral relations.