Landmark deals announced between India and Maldives
India will support connectivity projects in Maldives through a financial package consisting of a grant of USD 100 million and a new Line of Credit of USD 400 million
By IAR Desk
India’s will support the implementation of the Greater Male Connectivity Project (GMCP) in Maldives, through a financial package consisting of a grant of USD 100 million and a new Line of Credit of USD 400 million. This was announced by India’s External Affairs Minister Dr. S. Jaishankar earlier today, during a virtual meeting with the Foreign Minister of Maldives Abdulla Shahi.
The GMCP will be the largest civilian infrastructure project in Maldives, connecting Malé (the capital of Maldives) with three neighbouring islands – Villingili, Gulhifahu (where a port is being built under Indian LoC) and Thilafushi (new industrial zone) – by construction of a bridge-and-causeway link spanning 6.7 kms. Once completed, this landmark project will streamline connectivity between the 4 islands, thereby boosting economic activity, generating employment and promoting holistic urban development in the Malé region.
“India will fund the implementation of Greater Male Connectivity Project through a $400 mn LOC & $100 mn grant. This 6.7 km bridge project connecting Male with Gulhifalhu Port & Thilafushi industrial zone will help revitalise and transform Maldivian economy,” Mr. Jaishankar tweeted.
The interaction was a part of regular high-level exchanges between India and Maldives. Both sides took stock of bilateral relations and reviewed the state of time-tested relations between India and the Maldives, which had not been slowed down by the COVID-19 pandemic.
A couple of other landmark announcements were made during the meeting.
A direct cargo ferry service between India and Maldives will commence shortly. This had been promised by Prime Minister Narendra Modi during his visit to Maldives in June 2019, when he hdh addressed the Maldivosn majlis. The trip had been Mr. Modi’first overseas visit – when he also visited Sri Lanka – on assuming office for his second term as prime minister. The prime minister had then promised to start a ferry service between India and Maldives.
Dr. Jaishankar underscored the significance of this service in enhancing bilateral trade and connectivity and in further boosting the economic partnership between the two countries. “The cargo ferry service will enhance sea connectivity and provide predictability in supplies for importers in Maldives and exporters in India. It will also reduce logistics costs and times for traders,’ the Ministry of External Affairs announced.
The Minister also announced the creation of an air travel bubble between India and Maldives to facilitate movement of people from both sides for employment, tourism, medical emergencies etc. “We’re also starting an air travel bubble with Maldives to sustain and promote the dynamic people-to-people ties between the two countries,” Dr. Jaishankar tweeted.
Maldives is the first neighboring country with which an air bubble is being operationalized. “The air bubble symbolizes India’s support to shore up tourism arrivals and revenues in the Maldives. Health protocols in both countries will be strictly followed. The first flight under the Air Bubble is expected to commence on August 18,” the Ministry said, underlining that this agreement was in “keeping with our special ties.”
India will also be renewing quotas for supply of essential commodities to Maldives for the year 2020-21. The commodities include food items like potatoes, onions, rice, wheat, flour, sugar, dal and eggs as well as river sand and stone aggregates. The quotas assure food security, and the supply of essential construction items, and thereby provide certainty and price stability for such essential items in the Maldives.
India had earlier provided around 6.2 tonnes of essential medicines under `Operation Sanjeevani’ and also 600 tons of essential food items amidst the COVID pandemic.
Maldives is the largest beneficiary of Indian COVID-19-related assistance among neighbouring countries and External Affairs Minister reaffirmed India’s continued commitment for all possible support to the Maldives for minimising the health and economic impact of the pandemic.
Relations between India and the Maldives have been picking up since the government of President Ibrahim.Solih took charge in 2018, renewing it’s “India First” policy. Prime Minister Modi had even attended the swearing in ceremony of the Maldivian president.
