India announces $100 mn Line of Credit to Maldives

India, Maldives target expanding cooperation in various sectors including defence and security, ink 6 pacts apart from additional Line of Credit.

India announces $100 mn Line of Credit to Maldives

India on Tuesday has announced an additional $100 million Line of Credit (LOC) to Maldives which will help in time completion of the ongoing projects. Besides that, Prime Minister Narendra Modi and Maldives President Ibrahim Mohamed Solih in New Delhi, inked six agreements at the end of bilateral talks between the two nations. These were signed in an effort to expand cooperation in various sectors including defence and security.

The island nation holds a very important place in India’s Neighbourhood First Policy and in the Indian Ocean Region (IOR).

At a joint press conference, PM Modi asserted that New Delhi will continue to be the `first responder’ to any crisis or any need facing the island nation. He added, “We reviewed projects for the construction of 4000 social housing units in Greater Male. And, we will additionally provide financial support for 2000 social housing units.”

For the peace and stability of the IOR the coordination between the two countries in the field of defence and security is important, PM Modi highlighted in his remarks. He also talked about seriousness about the threat of transnational crime, terrorism and drug trafficking in IOR.

The visiting leader termed the discussions with PM Modi as fruitful and extensive, adding, “Maldives will remain a true friend of India. Our relations will be of highest priority always,” President Solih said.

During talks, he said both sides reiterated their firm commitment to deal with the threat of terrorism.

Six Pacts Inked

The six pacts inked between the two sides will facilitate cooperation in cyber security; potential fishing zone forecast capacity building, disaster management, housing and infrastructure development in the Maldives.

India-Maldives Cooperation in various fields

India has approved award of an EPC contract for $128 mn for the Hanimaadhoo Airport Development project under LOC. This international class airport is being developed in northern Maldives and will help in boosting the local economy.

Under LOC, approval has been given for DPR and commencement of tendering process of the $324 mn Gulhifalhu Port development project. Once completed the government of the island nation will relocate its existing old port of Male. And will decongest Male and there are plans to provide housing plots on this island.

India would be funding a cancer hospital at Laamu, which will be the first cancer specialty hospital of Maldives.

For additional 2000 social housing units in Hulhumale, India has approved $119 mn Buyer’s Credit financing by Exim Bank of India.

India is facilitating duty free tuna exports to India from Maldives under SAFTA.

India-Maldives Defence Cooperation

To further boost the maritime surveillance and security capacity of the Maldives National Defence Forces (MNDF), India is going to provide a replacement ship for the earlier provided ship-CGS Huravee. Also, 24 utility vehicles will be gifted to MNDF. India is supplying the second Landing Craft Assault (LCA) to Maldives.

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