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.
Highlights
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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.
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The Greater Male Connectivity project is the Male to Thilafushi Link project in Maldives.
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The agreement under the Line of Credit is effective from January 28, 2021.
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The utilisation period of the terminal is 60 months after the completion date of the project.
Greater Male Connectivity Project (GMCP)
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The GMCP project was the election promise by the current President of Maldives, Ibrahim Mohamed Solih.
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This project will connect the Gulhifalhu Port and Thilafushi industrial zone with a 6.7-kilometre-long bridge.
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This is a landmark project that will streamline the connectivity between the four islands namely, Maldives, Villingili, Gulhifahu and Thilafushi.
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It would help in boosting the economic activity and would also generate employment.
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It will also promote a holistic urban development in Male region of Maldives.
India-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.
Economic relations
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.