September 10, 2010 5:44 PM

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India to increase line of credit to Laos for infrastructure development

India has agreed to enhance line of credit to Laos for taking up of its infrastructure development including hydro power, transmission lines and irrigation projects. This has been decided during one -on-one meeting between President Pratibha Devising Patil and her Laos counterpart Choummaly Sayasone this morning in Vientiane . Both the sides have also agreed to strengthen ties in the field of Education, Health and Culture. Beefing media about high level talks between the two sides, Secretary East Mrs. Latha Reddy said India has announced its first tranch of 72.55 Million dollars for two power projects in Laos. She said India is looking forward to step up its trade with Laos as there is greater scope for investments and services sector in the land locked country. She added that India may have mineral imports from Laos in future. She also said it was agreed 100% duty free tariff preference would be given once Laos completes notification of ASEAN Free Trade Agreement. India and Laos have also signed an agreement extending the Cultural Exchange Programme for three more years. Indian Ambassador to Laos Dr. Jitendra Nath Misra and Vice Minister of Information and Culture of Laos Bouangeun Xaphouvong have signed the agreement in the presence of the presidents of the both sides. AIR correspondent M.S. Lakshmi reports that the high level talks held at the Presidential Palace, “Ho Kham” between President Pratibha Devisingh Patil and her Laos ‘s counterpart have gained significance as their historic cultural relations have taken a modern look. Besides supporting the ongoing power projects, India is also considering favorably providing 30 million dollars fro upgrading irrigation projects in Laos . On the cultural front, both sides have agreed to have joint cultural performances in 2011 during 10th anniversary of attaining World Heritage Site Status of Wat Phou, the pre-Angkor Wat temple of Laos while the Archeological Survey of India has begun working on its restoration.Earlier the President has inaugurated a power project of 115KV double line circuit constructed through a loan from India.

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