Lines of Credit for Development Projects

Development assistance in the form of concessional Lines of Credit (LOCs) is extended by the Government of India under the Indian Development and Economic Assistance Scheme (IDEAS) through the Exim Bank of India. In total 306 LOCs worth US$ 30.59 billion have been extended to 65 countries.. The projects under the LOCs cover critical infrastructure sectors such as transport connectivity through railways, roads and ports; power generation and distribution; agriculture and irrigation; manufacturing industries, healthcare, education and capacity building. So far about 322 LoC projects have been completed while 277 projects are under implementation.

Out of the total LOCs of US$ 30.59 billion, US$ 16.095 billion have been extended to Asian countries, with the largest value of commitments having been made in India’s immediate neighbourhood. LOCs worth US$ 7.862 billion have been extended to Bangladesh, US$ 2.129 billion to Sri Lanka, US$ 1.65 billion to Nepal, US$ 765 million to Mauritius, US$ 1.33 billion to Maldives, US$ 476 million to Myanmar and US$ 128 million to Seychelles.

There is a special focus on regional connectivity initiatives in the neighbourhood under GoI LOCs as these can act as force multipliers to accelerate regional growth & development, promote people-to-people contact and encourage trade and commerce. A total of 100 connectivity projects of around USD 7 billion have been taken up under LOCs in 4 countries in our neighbourhood, out of which 50 projects have already been completed. These include:


31 projects (13 already completed). 17 Rail (9 completed), 8 Road (3 completed), 5 Ports/Shipping (1 completed), 1 Airport. Apart from this, there are 3 Power Transmission Line projects and 1 Telecom project. The Power transmission lines for Power Evacuation facilities for the first Nuclear Power Plant of Bangladesh in Rooppur worth US$ 1 billion are also being implemented under GoI LOC extended to Bangladesh.


46 Road projects (22 already completed). Apart from this there are 4 Power Transmission Line Projects (1 completed). These road projects in various parts of Nepal will increase internal connectivity and will help improve transportation linkages with India.

Sri Lanka

19 projects (12 already completed). 16 Rail (10 completed), 2 Road (2 completed) and 1 Port project. Reconstruction of Sri Lankan Railways after the civil war has been done primarily through GoI LOCs.


4 projects (3 already completed). 3 Rail (2 completed), 1 Road (1 completed). Apart from this, there are 3 Power Transmission (3 completed) and 2 Telecom projects (2 completed).

India has completed numerous iconic infrastructure projects in partner countries under the Lines of Credit. Some of these iconic projects include the Parliament Building of Gambia, the Presidential Palace in Ghana, the Kosti Power project in Sudan which provides 1/3rd of the country’s power, the Nyaborongo Power Project in Rwanda which provides 1/4th of the country’s power, Railway Bridges and Signalling Systems in Bangladesh, the post-war rebuilding of the Sri Lankan Railways etc. India is building the first Oil Refinery of Mongolia under LOC at a cost of USD 1.24 billion which will provide critical energy security to this landlocked country. India has set up the first ever industrial units in many countries like the first Cement Plant of Djibouti, the first Milk Processing Plant of Mauritania, the first Sugar Factory of Ghana etc. The Upper Ruvu Water Treatment Plant in Tanzania provides clean drinking water to more than 2 million people in the Dar es Salaam area. LoCs have also been extended in many new sectors like defence and solar energy.