India to extend $100 million line of credit to the Maldives: PM Modi

The two countries have also signed six pacts to facilitate cooperation in capacity building, cyber security, housing, disaster management and infrastructure.

New Delhi: Prime Minister Narendra Modi on Tuesday said that India will extend an additional $100 million line of credit to the Maldives. This comes after the bilateral talks between PM Modi and visiting Maldivian president Ibrahim Solih in New Delhi on Tuesday.

The two countries also signed six pacts to facilitate cooperation in capacity building, cyber security, housing, disaster management and infrastructure. Prime Minister Narendra Modi in a joint press statement said that the threat of trans-national crime, terrorism and drug trafficking is serious in the Indian Ocean and therefore, close India-Maldives ties are vital for peace and security of the region. The Prime Minister also announced a line of credit of USD 100 million for the neighbouring country for the completion of development projects in a time-bound manner.

Meanwhile, Maldivian President Ibrahim Solih also reiterated his country’s firm commitment to dealing with the threat of terrorism. Both leaders participated in the virtual "pouring of the first concrete” ceremony of the USD 500 mn Greater Male Connectivity Project being built under the grant and concessional loan support from India. The two leaders directed the officials to ensure the timely completion of this largest landmark infrastructure project in the Maldives - that will enhance mobility between Male’, Villingili, Gulhifalhu and Thilafushi islands cut down logistics costs and drive people-centric economic growth- which will be a symbol of the enduring friendship between the two countries.

Also, the leaders reviewed the progress achieved in the development of the 4,000 social housing units being built in Greater Male under Buyer’s Credit financing of Exim Bank of India. These housing units are in line with the Government of Maldives’ focus on providing affordable housing for its citizens. They further welcomed the approval of Exim Bank of India Buyer’s Credit funding of USD 119 mn for the construction of another 2000 social housing units in Greater Male and the exchange of a Letter of Intent to this effect between Exim Bank of India and the Government of Maldives. President Solih expressed appreciation to the Government of India for the generous assistance for additional housing units.

The President of Maldives Ibrahim Mohamed Solih is on an Official Visit to India at the invitation of Prime Minister Narendra Modi. This is President Solih’s third visit to India since assuming office on 17 November 2018. President Solih is accompanied by a high-level official delegation comprising Ibrahim Ameer, Minister of Finance, Fayyaz Ismail, Minister of Economic Development, Aishath Mohamed Didi, Minister of Gender, Family and Social Services, and a business delegation.

Besides calling on PM Modi and External Affairs Minister Dr Jaishankar, President Solih also met with newly elected Indian Prez Droupadi Murmu, during the visit and congratulated President Murmu on assuming office as India’s 15th President. The India-Maldives bilateral partnership is underpinned by geographical proximity, historical, and cultural ties and shared values. Prime Minister Modi underlined that the Maldives occupies a special place in the hearts of Indians and India’s "Neighbourhood First” policy.

President Solih reaffirmed his government’s "India-First Policy”. The two leaders expressed satisfaction at the rapid expansion of the bilateral partnership in recent years, which has benefited the citizens of both countries. The leaders reiterated their commitment to further strengthen and deepen this mutually beneficial comprehensive partnership.

It is pertinent to note that the medical and financial assistance from India helped the Maldives overcome the health and economic fallouts of the covid pandemic. India was the first partner to gift Covid-19 vaccines to the Maldives. Prime Minister Modi congratulated President Solih and the people of the Maldives for their resilience, the successful vaccination drive and the solid economic rebound post-pandemic.

Cooperation in defence and security

The India-Maldives defence and security partnership is time-tested and is the leading example of regional cooperation in the areas of transnational crimes and disaster relief. This partnership is a force for stability in the Indian Ocean Region. Recognizing that the security of India and the Maldives are inter-linked, the two leaders reiterated their assurance to be mindful of each other’s concerns on the security and stability of the region; and to not allow their respective territories to be used for any activity inimical to the other.

Prime Minister Modi announced the supply of the second Landing Assault Craft (LCA) and a replacement ship for the earlier provided CGS Huravee from the Government of India for the Maldives National Defence Force to the Government of Maldives. He also announced the gifting of 24 utility vehicles from the Government of India the o Maldives National Defence Force.