Mozambique

The Government of India has so far provided five Lines of Credit totaling US$115 million. The first LOC was granted in September, 2004. Out of this US$ 10 million was allotted for rural electrification in Zambezia province, US$ 8 Million for water management and US$ 2 Million for a coir project. The water drilling project has been completed and the rural electrification project is nearing completion. Another US$20 Million LoC was granted in December 2006 for electrification of Gaza province. The third LOC of US$20 million was approved in April, 2008 and an MOU signed to this effect between EXIM Bank and Government of Mozambique in May, 2008 in Maputo. Under the MOU the loan of US$ 20 million will be used for water supply projects in Nampula and Zambezia provinces of Mozambique. Fourth Line of Credit for US$25 million for IT Park in Mozambique has been approved by the Government of India in August, 2008. The last and fifth LOC for US$30 million was approved in December, 2008 for financing rural electrification projects in the provinces of Gaza, Inhambane, Zambezia, Nampula. India is also providing assistance in setting up of a Cashew Processing Plant in Mozambique out of the annual grant of US$ 200,000 offered by the Government of India in 2003. HMT (I) Ltd., which was appointed as the implementing agency for the project, had already sent the plant to Mozambique in 2007. The plant’s installation though is still awaited due to non-availability of infrastructure facilities at the site. India has also been providing training to the Mozambican government nominees each year in a wide range of disciplines under the ITEC/SCAAP programme. The number of slots for Mozambique under SCAAP programme has been increased from 20 to 30 from 2008-09. Under ICCR’s GCSS scheme, 15 scholarships for undergraduate, Graduate and Research studies in India are awarded each year to qualified candidates (the value of which in real terms is over US$150,000 per annum) Two ‘Hole-in-the-Wall’ projects funded by Indian government were installed in Mozambique in 2007 which are working very well in Macuba in Zambezia province and Chibuto in Gaza Province. Dr. A.N. Rai, Scientist (Scientific indexing and statistics) is on a 2-year deputation to Mozambique since July 2007 under the ITEC Programme.

Many Indian companies have entered the coal mining sector in the recent past. The details of Indian companies presence in the coal sector and other areas are indicated below: - RICON - The consortium of RITES and IRCON in December, 2004 had won the 25-year concession for the rehabilitation and management of the Beira railway system (SENA line). The rehabilitation work for over 600 kms railway line is still in progress and likely to be completed by September, 2009. India has also been assisting the Mozambican Railways (CFM) in various aspects of its operation. - Coal India in March, 2009 was awarded two coal blocks in Moatize, Tete Province through open tender floated by Mozambican Government in December, 2008. - Tata Steel has entered into a joint venture with Australian company Riversdale with 35% stake in coal licences covering 25,000 hectares of land. Riversdale plans to start producing coal starting from 2010 from 290,000 hectares concession in Moatize Basin in Tete province. Tata Steel acquired an additional 7.3 percent stake in Riversdale in September, 2008 raising its total share to 42%. - In February 2008, an Indian steel company, the Global Steel Holding (GSH)(parent company of Ispat Steel) acquired two coal-prospecting licenses in Tete province, covering 30,000 hectares. It is located close to the concession operated by the Brazilian conglomerate Vale which is developing US$ 1.24 Billion coal project. - Coal Ventures International (CVI), a consortium comprising of Coal India, SAIL, NTPC, NMDC and RINL have seriously signalled purchasing stakes in existing coal licenses. A team of their experts visited Maputo in April, 2009 to explore the possibility of acquiring coal mines in Mozambique. - The Indian Sadbhav Engineering (SE) Company acquired 74% equity in the Hong Kong-based mining enterprise Ocean Bright Corporation Ltd. (OBCL) and gained the rights to mining prospecting in Manica, Tete and Nampula provinces. Besides they have the rights to copper ore in 24400 hectares of area in the Tete province, limestone in a similar area in Nampula province, and coal in 5230 hectares in Manica. - Jindal Steel, Videocon, Adani Group and M/s P.K. Ores of Orissa are other companies who have joined the ‘coal pursuit’ in Mozambique by buying coal mines from local license holders. - In 2008, two Indian companies Bharat Petroleum and Videocon Industries entered Mozambique’s oil sector by acquiring a stake in energy exploration in Rovuma Basin in the northern province of Cabo Delgado. These two companies have purchased a 20% stake in the offshore area 1 block from Andarko Petroleum of the US whose own share has been reduced to 36%. - RJ Corp India has tied up with Pilivi Industries of Mozambique for setting up of Pepsi Cola production plant on the outskirts of Maputo. - M/S Rusini Bio-Fuels of Hyderabad, India agreed to set up a US$ 30 million project to produce Ethanol from sweet sorghum in participation with Petromac of Mozambique. - The Government of the Southern Mozambiqcan province of Inhambane has entered into an agreement with an Indian company Aar Ess Exim Pvt. Ltd. for the construction of a cement factory in the locality of Pambara at a cost of US$65 million.