Exim Bank has extended USD 46 million line of credit to Mauritius for financing goods and defence related vehicles purchases.
"Exim Bank has entered into an agreement...For a Line of Credit of USD 46 million for financing eligible goods, machinery, equipment and services including consultancy services from India for the purpose of financing purchase of specialised defence-related equipment and vehicles for the Mauritius Police Force [MPF] in Mauritius," RBI said in a notification.
Exim Bank and Mauritius had entered into the agreement on February 12, 2014.
Of the total credit, goods and services including consultancy services of at least 75 per cent of the contract price are expected to be supplied by seller from India and remaining 25 per cent goods and services may be procured from outside India.
The credit agreement is effective from May 15, 2014 and the date of execution of agreement is February 12, 2014.
A line of credit allows borrowers to draw on the loan as and when required, instead of taking it at one go.
