India to consider credit line worth $400 million for Zimbabwe: Sharma

Written by feBureau | New Delhi | Updated: Mar 30 2013, 06:11am hrs
India will consider line-of-credit (LoC) proposals worth $400 million for Zimbabwe as part of various capacity building programmes with the African nation. Zimbabwe can also avail of the buyers credit scheme and the pilot 2% interest subvention scheme for its projects there.

The decisions were made during commerce and industry minister Anand Sharmas visit to Harare for the India-Zimbabwe joint trade committee (JTC) meeting.

India has approved a line of credit worth $28.6 million for upgradation of Deka Pumping Station and the River Water Intake System in Zimbabwe and is actively considering two more proposals from the Rehabilitation of Small Thermal Power Stations and the Gairezi Hydro Electric Project, and Bulawayo Power Station Upgrade Project.

During the meeting, the two sides emphasised that the present levels of bilateral trade and investment were much below the potential. In 2012, the India-Zimbabwe bilateral trade was $166 million, with balance of trade heavily in favour of India.

The Zimbabwean minister sought investments and technical assistance from India to enable Zimbabwe in revival of its manufacturing sector, and to achieve greater value addition and beneficiation of natural resources, which will also enable Zimbabwe to increase the value of its exports.

During the JTC meeting, the Indian side agreed to provide assistance to Zimbabwe in the development of the four clusters identified under its Industrial Development Policy diamond cluster, clothing and textiles, leather and footwear and agro-processing.