GREATER MALE CONNECTIVITY PROJECT - MALDIVES
Recently, Afcons, an Indian company, has signed a contract for the largest-ever infrastructure project in Maldives which is the Greater Male Connectivity Project (GMCP). The project is the result of bilateral consultation between India and the Maldives and has been under discussion since the visit of India’s External Affairs Minister to Male in September 2019.
GREATER MALE CONNECTIVITY PROJECT
It will consist of a 6.74 km-long bridge and causeway link between Male and nearby islands of Villingli, Gulhifalhu and Thilafushi. It will use renewable energy. The project is funded by a grant of USD 100 million and a Line of Credit (LOC) of USD 400 million from India. It is not only the biggest project India is doing in the Maldives but also the biggest infrastructure project in the Maldives overall.
Significance: It is considered as the economic lifeline for the Maldives and will provide a major boost to connectivity between the four islands accounting for about half of the Maldivian population. It will add dynamism to the Maldivian transport and economic activities.
INDIA-MALDIVES-CHINA
The GMCP project would be bigger than the Sinamale Bridge built with Chinese assistance that connects Male with Hulhumale and Hulhule and was completed in 2018. Also the Indian aid to Maldives in August 2020 was appreciated and contrasted with the previous expensive commercial loans to Maldives by China which are being termed “debt-trap diplomacy” of China. Wherein China intentionally extends excessive credit to another country with the intention of extracting economic or political concessions from the debtor country. The India-Maldives relationship suffered a setback when Maldives entered into a Free-Trade Agreement (FTA) with China in 2017. However with the election of a new pro-India government in Maldives, the relationships have improved and Maldives is also considering pulling out of the FTA with China. At present, India-assisted projects in the region include water and sewerage projects on 34 islands, reclamation projects for the Addl island, a port on Gulhifalhu, airport redevelopment at Hanimaadhoo, and a hospital and a cricket stadium in Hulhumale. India had also announced a 800 million USD Line of Credit to Maldives in December 2018.
RECENT DEVELOPMENTS B/W TWO NATIONS
- Security Cooperation: Earlier in August 2021, in the Deputy National Security Adviser-level meeting hosted by Sri Lanka, India, Sri Lanka and the Maldives had agreed to work on “four pillars” of security cooperation.
- UNGA President: In June 2021, India welcomed the election of Maldives’ Foreign Minister as the President of the 76th session of the United Nations (UN) General Assembly (GA) for 2021-22.
- Mou’s: In November 2020, India and the Maldives signed four Memorandums of Understanding (MoUs) related to High Impact Community Development Projects and on Cooperation in Sports and Youth Affairs.
- Relief Package: In August 2020, India had committed to Maldives a five-pronged package including air, sea, intra-island and telecommunications to help it deal with the economic impact of the Covid-19 pandemic.
- Bilateral Bubble: Maldives is the first South Asian country with which India started a bilateral air bubble during Covid-19 pandemic.
- Bilateral Visits: Since September 2018, India and Maldives have seen a number of bilateral visits.
- India’s Prime Minister visited Maldives to attend the swearing-in ceremony of President Solih.
- Maldives President also visited India in December 2018.
- The Home Minister of Maldives met the Indian Home Minister in February, 2020. Maldives and India are members of the South Asian Association for Regional Cooperation (SAARC) and the South Asia Subregional Economic Cooperation (SASEC).
RELATIONSHIP BETWEEN THE TWO COUNTRIES
- History: India and Maldives share ethnic, linguistic, cultural, religious and commercial links. India was among the first to recognize Maldives after its independence in 1965 and later established its mission at Male in 1972.
- Defence: India provides the largest number of training opportunities for Maldivian National Defence Force (MNDF), meeting around 70% of their defence training requirements. ‘Ekuverin’ is a joint military exercise between India and Maldives.
- Disaster Management: The Government of India has provided large-scale assistance to Maldives in the aftermath of the 2004 Indian Ocean tsunami and during the 2014 Male water crisis.
- Trade and Tourism: India is Maldives’ 4th largest trade partner after UAE, China and Singapore. In 2018, India was the 5th largest source of tourist arrivals in Maldives. The Maldivian economy is heavily dependent on its tourism sector, which is the major source of foreign exchange earnings and government revenue.
- Operation Cactus: In 1988, in response to a request from the Maldives, India activated Operation Cactus to deploy its military and ensure regime continuity in Male.
WHAT IS NEIGHBORHOOD FIRST POLICY?
It is part of India’s foreign policy that actively focuses on improving ties with India's immediate neighbours which is being termed as
Neighbourhood first policy in the media
It was started well by inviting all heads of state/heads of government of South Asian countries in his inauguration of PM Modi first term and later held bilateral talks with all of them individually which was dubbed as a mini SAARC summit. PM Modi made his first foreign visit to Bhutan in his first term.
CONCLUSION
This isn’t only about an ambitious project involving both India and the Maldives. The terms of the agreement call for the completion of the bridge by 2023. For India, Maldives holds strategic importance and showing that it can deliver would help mitigate some concerns that may exist in the Maldives. In accordance with the Neighbourhood First Policy of the government, India remains a committed development partner for a stable, prosperous and peaceful Maldives. Given the economic hardships being faced by Maldives due to Covid-19 pandemic and previous debts, this project and previous packages will definitely warm up the relationship between both the countries. This will also provide a strategic edge to India over China with regards to Maldives.
