India has offered line of credit amounting to $75 million to the government of Zambia. The African nation is looking to expand its capacity in power generation and other related infrastructure areas.

On a first visit by an Indian leader in more than 20 years, vice president Mohammed Hussain Ansari had formal meeting with George Kunda, the Zambian vice president and also called upon the country’s president.

Zambia is a major exporter of copper and wants to meet the growing demand for power. The country’s power demand currently is about 1,500MW. The line of credit agreement was signed between the government of Zambia and Export-Import Bank of India. The agreement is for Itezhi Tezhi hydropower project.

Speaking to the press, external affairs ministry secretary (west) Vivek Katju said "This project is designed to generate 120 mega watt of energy which will contribute to the electricity sector (in Zambia)."

The project is to be implemented by a joint venture between Zambia Electricity Supply Co. Ltd (Zesco) and Tata Africa Holdings (SA) Pty Ltd. Tata Africa holding confirmed that the venture has finalized the vendors for the project.

The meeting between the two vice presidents was characterised by "extraordinary warmth", according to Kitju. The Zambian vice president spoke about inspiration from Mahatma Gandhi's non- violence struggle. Both leaders felt the need to "reinvigorate and reenergise" relations with changing times.

In addition, India has offered another $75 million line of credit for uses in social sectors and a grant of $5 million for investment in health and education. Katju, who is accompanying the vice president on the visit further said, “We will now await proposals from Zambian authorities in the area of health, infrastructure, education among others to utilize this line of credit.”

In 2008, the India-Africa forum summit was organized in New Delhi where India extended lines of credit of $5.4 billion for a period of four years, of which $1 billion has already been utilized.

In recent years India tried to catch up to its neighbor China in gain access to the raw materials and energy sources in Africa. India’s total trade with is continent is about $39 billion which includes $206.32 million with Zambia.