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.