'Not an assistance, but an investment towards shared future': PM Modi announces Special Economic Package for Mauritius

Prime Minister Narendra Modi has today announced a Special Economic Package for Mauritius, including a variety of assistance projects under grant and grant-cum-line of credit basis (LOC).

PM Modi who met Mauritius PM Dr. Navin Ramgoolam in Varanasi today, called this package as an ‘investment’ into the two countries’ ‘shared future,’ rather than being considered as a mere ‘assistance’ for the island nation.

“India takes pride in being a trusted primary partner in Mauritius’ development. Today, we have announced a Special Economic Package designed to support Mauritius’ needs and priorities. This will strengthen infrastructure, create new employment opportunities, and further enhance healthcare facilities,” PM Modi said.

Monetary assistance for infrastructure development to be provided 

India will undertake a series of 4 assistance projects in Mauritius, on a grant basis. These include development of a new 500-bed Sir Seewoosagur Ramgoolam National Hospital, an AYUSH Centre of Excellence, a veterinary school and an animal hospital, and a provision of helicopters. The government has not revealed the number of helicopters estimated to be provided to the country as part of this assistance plan.

The projects announced on grant basis are estimated around $215 million or MUR 9.80 billion which is approximately ₹1,904 crore.

Meanwhile, the assistance that India will provide on a grant-cum-LOC basis includes the completion of construction work of a new Air Traffic Control (ATC) tower at Mauritius’ SSR International Airport, development of Motorway M4, of Ring Road Phase II, and an acquisition of port equipment by Cargo Handling Corporation Ltd (CHCL).

Further, these projects announced on a grant-cum-LOC basis are estimated to be around $440 million or MUR 20.10 billion which is approximately ₹3,906 crore. Grant-cum-LOC basis implies Line of Credit that is given out as grants.

Additionally, the Centre will provide monetary aid in the redevelopment and restructuring of Port in Mauritius, and in development and surveillance of Chagos Marine Protected Area. As part of this in-principle agreement, India will provide Mauritius with budgetary assistance of $25 million in FY25-26, which is approximately ₹221.21 crore.

MoUs so signed between the two nations

The two leaders also signed over 8 Memorandum of Understanding (MoUs) agreements, aside from signing the renewal of a previous MoU in hydrography and taking forward the government-to-government (G2G) proposal.

Some of the MoUs signed today between the two nations covered cooperation in Science & Technology, in space research, oceanography research (CSIR-NIO with Mauritius Oceanography Institute), civil service training (Karmayogi Bharat with Mauritius’ Ministry of Public Service), power sector collaboration, Indian grant assistance for Phase II of Small Development Projects, and establishment of a satellite telemetry and tracking station.

Other agreements also included fresh partnerships between IIT Madras and University of Mauritius, and between Indian Institute of Plantation Management, Bengaluru and University of Mauritius.

PM Modi added that in continuation with last year’s introduction of UPI and RuPay cards in the island nation, the two countries will now focus on ‘enabling trade in local currencies.’

The countries also plan to take forward the G2G proposal to set up a 17.5 MW Floating Solar PV Project at Tamarind Falls. A team from NTPC Ltd. is expected to visit Mauritius in coming days to finalise an agreement with Central Electricity Board (CEB).

Additionally, as part of India’s support to Mauritius in energy transition, PM Modi shared, “we are providing 100 electric buses to Mauritius, of which 10 have already been delivered.”

Ramgoolam who is on a week-long state visit to India, had reached Varanasi on Wednesday and will head to Ayodhya tomorrow and then attend a business event in Mumbai.