Daily Current Affairs : 18-October-2024

India has extended a new Line of Credit (LoC) of ₹487.60 crores to Mauritius to finance a critical water pipeline replacement project. This move is part of India’s ongoing efforts to support the developmental goals of its partner countries through concessional loans under the Indian Development and Economic Assistance Scheme (IDEAS). The LoC will help improve the water supply infrastructure in Mauritius, highlighting India’s commitment to enhancing socio-economic development in the region.

What is the IDEAS Scheme?

The Indian Development and Economic Assistance Scheme (IDEAS) was launched in 2003-04, initially known as the “India Development Initiative.” Its primary aim is to promote India’s political, economic, and strategic interests by providing financial assistance to developing nations for key development projects.

Key Features of the IDEAS Scheme:

  • Concessional Financing: The scheme offers financial support in the form of Lines of Credit (LoCs), which are provided with concessional terms. This makes it easier for recipient countries to fund essential infrastructure and development projects.
  • Support for Various Sectors: IDEAS focuses on providing financial assistance for projects in critical sectors such as infrastructure, water supply, education, healthcare, and more. The goal is to help build long-term socio-economic development in these countries.
  • Administration and Implementation: The scheme is managed by the Ministry of External Affairs (MEA) of India, with operational support from the Exim Bank of India. MEA typically recommends the projects, ensuring they align with both the needs of the recipient countries and India’s broader diplomatic and strategic objectives.
  • Strengthening Diplomatic Ties: By providing financial assistance through the IDEAS scheme, India strengthens its relationships with developing nations, particularly in the Global South. These initiatives promote diplomatic goodwill and foster long-term partnerships.

Significance of the Recent LoC to Mauritius

The ₹487.60 crore LoC extended to Mauritius will finance a much-needed water pipeline replacement project, improving the island nation’s water supply system. This will not only benefit the local population but also contribute to overall development, making water access more reliable and sustainable. This project reflects India’s commitment to helping its neighbors address critical infrastructure challenges.

Important Points:

  • India extends ₹487.60 crore Line of Credit (LoC) to Mauritius for a water pipeline replacement project.
  • This initiative is part of India’s Indian Development and Economic Assistance Scheme (IDEAS).
  • IDEAS scheme was launched in 2003-04 to promote India’s political, economic, and strategic interests through developmental aid.
  • The scheme offers concessional loans for developmental projects in infrastructure, water, education, and more.
  • Ministry of External Affairs (MEA) administers the scheme with support from Exim Bank of India.
  • Projects funded under IDEAS aim to support socio-economic development in developing countries.
  • The LoC for Mauritius will improve the country’s water supply infrastructure.
  • IDEAS also helps strengthen diplomatic ties between India and its partner nations in the Global South.

Why In News

India has extended a new Line of Credit (LoC) of ₹487.60 crores to Mauritius for financing a critical 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, aimed at promoting sustainable infrastructure and improving the quality of life.

MCQs about IDEAS Scheme

  1. What is the purpose of the ₹487.60 crore Line of Credit (LoC) extended by India to Mauritius?
    A. To finance a healthcare project
    B. To support a water pipeline replacement project
    C. To develop a new airport
    D. To build a new power plant
    Correct Answer: B. To support a water pipeline replacement project
    Explanation: The ₹487.60 crore LoC extended by India to Mauritius is specifically aimed at financing a water pipeline replacement project, helping improve the island nation’s water supply infrastructure.
  2. Which Indian scheme is responsible for providing concessional loans for developmental projects in partner countries?
    A. Make in India Scheme
    B. Indian Development and Economic Assistance Scheme (IDEAS)
    C. Digital India Initiative
    D. Clean India Campaign
    Correct Answer: B. Indian Development and Economic Assistance Scheme (IDEAS)
    Explanation: The Indian Development and Economic Assistance Scheme (IDEAS) is designed to provide concessional loans to support developmental projects in various sectors like infrastructure, water, and education in partner countries.
  3. Which Indian ministry administers the IDEAS scheme?
    A. Ministry of Finance
    B. Ministry of External Affairs (MEA)
    C. Ministry of Home Affairs
    D. Ministry of Rural Development
    Correct Answer: B. Ministry of External Affairs (MEA)
    Explanation: The IDEAS scheme is administered by the Ministry of External Affairs (MEA) of India, with support from Exim Bank of India.
  4. What is one of the key objectives of the IDEAS scheme?
    A. To increase trade tariffs between India and its partner countries
    B. To promote India’s political, economic, and strategic interests
    C. To support cultural exchange programs
    D. To fund military operations in neighboring countries
    Correct Answer: B. To promote India’s political, economic, and strategic interests
    Explanation: One of the key objectives of the IDEAS scheme is to promote India’s political, economic, and strategic interests by providing financial assistance for developmental projects in partner countries, thereby strengthening diplomatic relations.

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