India offers $100 m credit to Jordan

India offers $100 m credit to Jordan

India on Saturday offered a $100 million Line of Credit to Jordan as President Pranab Mukherjee began his first trip to the troubled West Asia region seeking greater trade relations with the Heshmite Kingdom.

Arriving at the Queen Alia airport here in the afternoon and driving straight to the Presidential Palace, ‘Al Husseinieh’, the President held talks with King Abdulla-II and other top leadership of Jordan where he also raised the issue of long-term supplies of phosphate so as to help New Delhi ensure food security in the country. The talks were held after a colourful ceremonial welcome at the presidential palace.

As the King and Jordanian Prime Minister Dr Abdullah Ensour talked about the positive investment climate in their country, the President announced the Line of Credit to Jordan, with whom New Delhi had initiated diplomatic relationship 65 years ago.

“The projects under the Line of Credit will be identified later,” Anil Wadhwa, Secretary (East) in Ministry of External Affairs, told reporters after the President's restricted meeting with the King and delegation level talks here.

Line of Credit is an arrangement between a financial institution, usually a bank, and a customer that establishes a maximum loan balance that the bank will permit the borrower to maintain.

As both Mukherjee and the King inaugurated Jordan India Fertiliser Company, a joint venture of IFFCO and Jordan Phosphate Mines Company, located in Eshidiya at the Palace, King Abdullah assured India that he would ask his officials to work out long-term supplies of phosphate.

“The President talked about the food security needs of the country and how it is a constant challenge to reduce it. It is in this context that he spoke about the enhanced supply of fertilisers,” Venu Rajamony, the President’s Press Secretary said.

At the meeting, the IFFCO announced 1 lakh Jordanian Dinar (approx USD 70,000) to the trust run by Queen of Jordan Raina for social projects.

Apart from measures in trade and commerce, India also announced increasing the number of scholarships for Jordanian students to pursue higher education in India to 50.
With Jordan offering a favourable climate for Indian businesses, questions were raised whether the trouble in the region would attract businessmen from back home.
Indian officials maintained that there is nothing to worry as several Indian groups are talking to the Jordan government.

Tata Group is arriving in Amman on October 12 to hold discussions while Mahindra and Mahindra is also looking for business opportunities in the country.

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