India offers liberal aid to Mozambique to boost trade ties

Sagar Kulkarni

Maputo (Mozambique), Jul 5 (PTI) Seeking to boost
trade ties, India Monday offered to train Mozambique nationals
in exploring and extracting the mineral-rich country's vast
coal deposits and also extended liberal aid to the youth to
pursue higher studies.

Indian External Affairs Minister S M Krishna announced
that India would help set up an Apex Planning and Training
Organisation focussing on the coal sector which New Delhi
seeks to tap to meet its growing energy needs.
Krishna, the first External Affairs Minister to pay a
bilateral visit to Mozambique in decades, reviewed the entire
gamut of bilateral ties during his discussions with President
Armando Guebuza and Foreign Minister Oldemiro Baloi.
"We are providing USD 40 million to set up an Apex
Planning and Training Organisations in the coal sector which
we consider one of the vital and critical sectors both from
Mozambique's point of view as well as India's point of view,"
Krishna told reporters here.
The Apex Planning Organisation and the Apex Training
Organisation will be set up by state-run Coal India Limited.
It is expected to help in training Mozambique nationals and
those in the neighbouring countries in coal exploration and
extraction activities.
State-run Coal India Limited, Essar and the Tata
Group-Riverdale joint venture have already been alloted coal
blocks in this mineral-rich African nation.
"Mozambique has been blessed with very rich coal
resources and for India, which is growing at 8 per cent every
year, energy becomes critical in our development agenda,"
Krishna said.
India also extended a USD 25 million Line of Credit to
Mozambique which is expected to be utilised for setting up
power transmission lines in two of its provinces.
"Greater cooperation between the two countries in the
energy sector, particularly with respect to coal, is very
important," the minister said.
India, Mozambique bilateral trade was USD 172.7
million in 2008 out of which exports from India amounted to
USD 144.3 million. The exports from Mozambique to India was
USD 28.4 million.
"We did have discussions on the tremendous trade
potential between India and Mozambique. The present level of
trade does not really reflect the potential that is hidden in
Mozambique and India," Krishna said.
In addition, he also announced a grant of five million
dollars to support the health and education sectors in
Mozambique.

"We have offered a number of solutions for the young
men and women of Mozambique to go to various universities of
India to pursue their post doctorol studies," Krishna said.
He also called on Prime Minister Aires Baptista Aly.
Alongside the minister's visit, about 20 businessmen
and industry representatives also held a meeting here to
explore opportunities in this nation.
China has been stepping up its presence in this
country and has built a new swanky airport terminal building
here which is expected to be functional within a month. It is
also building roads and bridges connecting some nearby islands
to the mainland.
Mozambique's principal exports are aluminium ignots,
electric power, natural gas, prawns, cotton, cashew nuts and
wood.
India has provided assistance to Mozambique in its
development through five Lines of Credit worth total amount of
USD 115 million for various projects like rural
electrification, water management and information technology.
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