Modi will also address the Ugandan Parliament, the first time an Indian prime minister will do so, and also announce lines of credit of United States dollars 205 million (759 billion Shillings) for electricity transmission and agriculture projects, according to a statement released by TS Tirumurti, the Indian secretary for Economic Relations.
The new financing is part of eight cooperation agreements sealed between President Paul Kagame and his latest guest Indian Prime Minister Narendra Modi.
The announcements came during Prime Minister Narendra Modi's visit to Rwanda, the first by an Indian prime minister to the country.
Speaking ahead of the visit, ministry of external affairs secretary (economic relations) T.S. Tirumurti noted that India views "Rwanda as an extremely important partner in Africa because apart from being the Chair of African Union right now but they have also been, in many ways, gateway to Eastern Africa".
For his part, Modi thanked President Kagame for taking Rwanda from the abyss following the the 1994 Genocide against Tutsi that left more than a million dead. Supporting the Rwandan government's Girinka programme, the cows were handed over to villagers who do not yet own a cow, in the presence of President Paul Kagame.
From India with love: PM Modi's goodies to Rwanda and Uganda
The two leaders noted that although the trade volume between Uganda and India stands above US$700 million, Uganda's exports to India were US$44 million previous year adding that they had agreed to do all it takes to bring about favourable terms of trade so that both countries can mutually benefit from each other.
The agreements were signed by ministers on both sides - just less than three hours after Modi landed in Kigali. One which is of $100 million for industrial parks and nearly a similar amount for agriculture and irrigation. Under this scheme, poor families are donated diary cows, and then first female calf born is then gifted to the neighbour.
Describing the Ugandan president as an "old friend of India", he said the memory of his first trip to Uganda as Gujarat chief minister in 2007 was still afresh. There is a special outreach session for BRICS leaders with their African counterparts from Togo, Zambia, Namibia, Senegal, Gabon, Ethiopia, Angola, Uganda and Rwanda.
Later in the day, Mr Modi will head to Johannesburg in South Africa to attend the 10th BRICS Summit. "Honey can be produced along with milk and both businesses can be run together which would provide additional benefits", PM Modi said, adding that the Indian government is ready to provide every support to the Rwandan government for this.
Hundreds missing as hydropower dam collapses in Laos
The remaining 10 percent of power would be sold to the local grid under an agreement between the PNPC and the Electricite du Laos. Hundreds of people are missing and an unknown number feared dead in Laos after a hydropower dam under construction collapsed.