USD100 million LoC extended by India to Maldives; launches Greater Male connectivity projects

NEW DELHI: India and the Maldives on Tuesday signed six agreements to expand cooperation in various fields, including cyber security. Prime Minister Narendra Modi also announced USD100 million in funding to help the island nation complete some infrastructure projects.

Prime Minister Modi announced a Line of Credit of USD 100 million (one million = 10 lakhs) to the Maldives for timely completion of development projects.

After extensive talks with visiting Maldivian President Ibrahim Mohamed Solih, Modi said India would provide 24 vehicles and a naval vessel to Maldivian security forces and develop police infrastructure on the country's 61 islands.

In his media statement in the presence of Solih, Modi said that India has been and will continue" to be the "first responder" of any need or crisis faced by the Maldives.

The strengthening of bilateral defence and security ties, including in the maritime domain, comes amid concerns over China's growing encroachment into the Indian Ocean region, which is considered the backyard of the Indian Navy.

The Maldivian President, who is on a four-day visit to India, said his government is fully committed to taking bilateral ties to new heights.

"Our relationship with India will always be of the highest priority. The Maldives will always remain a true friend of India, firmly committed to our shared vision of peace and development in our countries and the region," Solih said.

The six agreements signed between the two countries will facilitate cooperation in capacity building, cyber security, housing, disaster management and infrastructure development in the Maldives.

In the Indian Ocean region, Maldives is one of India's key maritime neighbours, and overall bilateral relations, including in the defence and security sectors, have been on an upswing in the last few years.

In his comments, Modi said the India-Maldives partnership is not only working in the interest of the citizens of both countries but also becoming a "source" of peace, stability and prosperity in the region.

The two leaders also virtually witnessed the first concretization of the greater Male connectivity project.

The island nation sealed an agreement to implement the India-funded connectivity project in August last year which is billed as the largest infrastructure initiative to be undertaken in the island nation.

Under the Greater Male Connectivity Project (GMCP) project, a 6.74 km long bridge and causeway link will be built to connect the capital city Male with adjoining islands of Villingli, Gulhifalhu and Thilafushi.

"We welcomed the beginning of work on the greater Male connectivity projects. It will be the biggest infra project. We also reviewed projects for the construction of 4,000 social housing units in Greater Male," Modi said.

"I am happy to announce that we will additionally provide financial support for 2000 social housing units. We have also decided to provide an additional line of credit of USD 100 million so that all projects can be completed in a time-bound manner," Modi added.

The Prime Minister said that friendly relations between India and Maldives have been rejuvenated and closeness has increased.

"The threat of trans-national crime, terrorism and drug trafficking is serious in the Indian Ocean. And therefore, close contact and coordination between India and Maldives in the field of defence and security are vital for the peace and stability of the entire region," Modi said.

The Prime Minister also explained about greater bilateral cooperation in tackling the pressing challenges.

"It includes cooperation in capacity building for the Maldivian security forces and their training. I am happy to announce that India will provide 24 vehicles and a naval boat for Maldivian security personnel. We will cooperate in developing infrastructure for police in 61 islands of the Maldives," he said.

The prime minister said that India will also assist the Maldives in achieving its target of net zero carbon emissions by 2030.

The Maldivian leader thanked India for its generous assistance when his country was reeling under the COVID-19 pandemic.

"Was it not for generous assistance received in the form of budgetary support, medical assistance and supplies, and the Covishield vaccines donated by the government of India, our economic recovery would have been hard and long," he said.

Challenges of terrorism were also discussed by the leaders during the visit.

"We both reiterated our firm commitment towards work against terrorism and strengthen cooperation in the maritime safety and security in the Indian Ocean Region," he said.

Referring to the cyber security pact, he said it is based on "equality, reciprocity and mutual benefit".

The Maldivian president also invited Indian investors to explore the opportunities in his country and forge a mutually beneficial partnership.

"We welcome the operationalisation of the RuPay cards in the Maldives and agreed to consider further measures to boost bilateral travel and tourism and economic linkages," Solih said.

With PTI inputs