Mehreteab Mulugeta, minister counsellor at the Ethiopian embassy, said Kanan Devan Hills Plantations, the former tea plantation arm of Tata Tea, has acquired 2,000 hectares of land in Ethiopia for setting up a tea plantation.

'Officials of Kanan Devan had earlier visited us and has recently acquired the land where they plan to set up a tea plantation,' Mulugeta said.

Recently, the Delhi-based Uttam Sucrotech won a $100-million contract for expansion of the Wonji-Shoa sugar factory in central Ethiopia.

The Indian government has given a $640-million loan for three sugar factory projects: two expansion projects at Fincha and Wonji and a giant new factory at Tendaho in Afar regional State.

The money is to be released in phases from India's state-owned Export Import (EXIM) Bank.