Port Louis: India today offered USD 500 million concessional line of credit to Mauritius for key infrastructure projects as the two nations signed five pacts, including on ocean economy, during Prime Minister Narendra Modi's visit to the strategic Indian Ocean island nation.
“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,” Prime Minister Modi said at the signing of the pacts following talks with his Mauritian counterpart Anerood Jugnauth.
“I consider our security cooperation to be a cornerstone of our strategic partnership. Our agreement on cooperation in Ocean Economy is an important step in deepening our scientific and economic partnership,” he said.
Mauritius, in turn, offered India cooperation on information exchange on taxation.
“I also conveyed our deep appreciation for the support and cooperation offered by Mauritius on information exchange on taxation,” Modi said.
During talks with Modi, Mauritian Premier Jugnauth raised the issue related to Mauritius-India Double Taxation Avoidance Treaty.
“I have requested PM Modi to give his full support on DTAA as it is of prime importance to global business sector,” he said at the signing of the agreements. The India-Mauritius Double Taxation Avoidance Agreement (DTAA) is being revised amid concerns that Mauritius is being used for round-tripping of funds into India even though that country has always maintained that there have been no concrete evidence of any such misuse.
Traditionally, Mauritius has been one of the biggest sources of Foreign Direct Investment (FDI) into India. The five pacts signed included a MoU between the two countries in the field of ‘Ocean Economy' which will provide an extensive framework for cooperation, a novel and critical area of sustainable development in the Indian Ocean Region. The other agreements signed were a MoU for the improvement in sea and air transportation facilities at Agalega Island of Mauritius, MoU on cooperation in the field of traditional system of medicine and homoeopathy, programme for cultural cooperation between 2015-18 and a pact on import of fresh mango from India.