Indian central bank Reserve Bank of India (RBI) has announced that the Export-Import Bank of India (Exim Bank) will provide $400 million to Maldives Connectivity project. Exim Bank will provide the fund for the Greater Male Connectivity Project.
Points To Note
- The Bank had signed an agreement with the government of Maldives to provide the supported Line of Credit (LoC) of $400 million on 12th October 2020.
- Greater Male Connectivity project is the Male to Thilafushi Link project in Maldives.
- The agreement under the Line of Credit is effective from 28th January 2021.
- The utilisation period of the terminal is 60 months (2 months) after the completion date of the project.
About Greater Male Connectivity Project
- This project was the election promise by the current President of Maldives, Ibrahim Mohamed Solih.
- It will connect the Gulhifalhu Port and Thilafushi industrial zone with a 6.7-km-long bridge.
- It is a landmark project that will streamline the connectivity between the four islands namely, Maldives, Villingili, Gulhifahu and Thilafushi.
- This project would help in boosting the economic activity and would also generate employment.
- This project will also promote a holistic urban development in Male region of Maldives.
India-Maldives Bilateral Relation
Both countries established their Diplomatic Relation in 1966. India is among those countries that recognized the Maldives after it gained its independence in the year 1965. Both share an ethnic, linguistic, religious, cultural and commercial links. Currently, the Republic of Maldives is home to 25000 Indian nationals. Both India and Maldives are the founding members of SAARC (South Asian Association for Regional Cooperation). India also consider Maldives a part of its ‘Neighbourhood First’ Policy. In the line, India is a part of ‘India First’ policy of Maldives.
Bilateral Economic relations
The economic relation between India-Maldives have strengthened significantly after the success of Operation Cactus. India has always provided extensive economic aid for developing infrastructure, health, telecommunications in the country. India also established the Indira Gandhi Memorial Hospital (IGMH) in Male.
Exim Bank to provide $400 Million for Maldives project