India has offered Mozambique a grant of $40 million for improving technical capacity in coal mining and a $25 million line of credit for rural electrification, officials said on Tuesday.
The agreements for the two loans were signed on Monday in Mozambique's capital Maputo by External Affairs Minister SM Krishna.
Krishna held talks with his Mozambican counterpart Oldemiro Baloi and called on President Armandoemilio Guebuza.
The grant for improving technical capacity in coal mining is significant as India has been trying to get access to Mozambique's huge coal resources.
"Mozambique is a country rich in coal resources, and the question of energy is critical for the development of India. Hence our cooperation is prioritizing the energy sector," Krishna said in Maputo.
Krishna began his trip in Mauritius last week. He will now travel to Seychelles, before returning to India.