Exim Bank to provide $400 Million for Maldives project

Highlights:

• The Reserve Bank of India has announced that the Export-Import Bank of India (Exim Bank) will provide USD 400 million to Maldives project. 
• It will provide the fund for the Greater Male Connectivity Project.
• The Exim Bank had signed an agreement with the Maldives government to provide the supported Line of Credit of USD 400 million on October 12, 2020.
• The Greater Male Connectivity project is the Male to Thilafushi Link project in Maldives.
• The agreement under the Line of Credit is effective from January 28, 2021.
• The utilisation period of the terminal is 60 months after the completion date of the project.
• The GMCP project was the election promise by the current President of Maldives, Ibrahim Mohamed Solih.
• This project will connect the Gulhifalhu Port and Thilafushi industrial zone with a 6.7-kilometre-long bridge.
• This is a landmark project that will streamline the connectivity between the four islands namely, Maldives, Villingili, Gulhifahu and Thilafushi.
• It would help in boosting the economic activity and would also generate employment.
• It will also promote a holistic urban development in Male region of Maldives.

Indo-Maldives Relation:

• The relation of India with Maldives was established in the year 1966. 
• India is among those countries that recognized the Maldives after it gained its independence in 1965.  
• Both the countries share an ethnic, linguistic, religious, cultural and commercial links. 
• Currently, the Maldives is home to 25,000 Indian nationals. 
• Both the countries are the founding members of SAARC. 
• India also consider Maldives a part of its ‘Neighbourhood First’ Policy. 
• In the line, India is a part of ‘India First’ policy of Maldives.
• The economic relation between both the countries 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 in Male.