Maldives
India and Maldives share ethnic, linguistic, cultural, religious and commercial links steeped in antiquity. The relations have been close, cordial and multi-dimensional. India was among the first to recognize Maldives after its independence in 1965 and to establish diplomatic relations with the country.
Cooperation to tackle the challenge of COVID-19 Pandemic
- India has extended humanitarian assistance of 200,000 doses of COVID-19 vaccine (Covishield) to the Government and people of Maldives to fight the pandemic. India has also provided 12,000 doses under Covax scheme.
Capacity Building & Other Exchanges
- India has been a traditional partner for the Maldives in human resource development across sectors for decades. Given its small population base, isolated geographical location of islands, and many resource challenges, Maldives suffers from a crunch of good human capital. Several Maldivian youths acquire their higher education in India Universities every year. Indian teachers have been a fixture at Maldivian schools across islands for decades.
- India has traditionally offered a substantial number of ICCR scholarships to Maldivian youth i.e. 39 for 2021-22 & 34+ for 2022-23 & 2023-24. Since 2012-13, more than 165 Maldivian students have benefited from ICCR scholarship.
- India also offers 10 seats every year to Maldives under Department of Science and Technology (DST), Govt. of India “India Science and Research Fellowship (ISRF) Programme”. Maldives has been a partner of the ITEC programme for several years. In 2019-20, the in-person ITEC slots were increased to 200. Under the ITEC (in-person) programmes, number of Maldivians trained is 47, 28, 84 & 174 in 2017-18, 2018-19, 2019-20 & 2022-23.
- Amid COVID19 pandemic led travel restrictions, ITEC in-person was not conducted for 2020-21 & 2021-22 but to overcome the challenge of travel restrictions various e-ITEC programmes were offered from October 2020 and till date more than 650 Maldivians have benefitted from these e-ITEC programmes.
- India is seeking to initiate/strengthen institutional linkages with all stakeholders in the Government and society of Maldives. In the past around 4 years, institutional linkages between counterpart organisations on both sides have increased adding heft to capacity building and training initiatives. Various MoUs have been signed focusing on capacity building of Human resources includes:
- MoU on Civil Services between Civil Services Commission (CSC) and National Centre for Good Governance (NCGG),
- MoU on Cooperation in Customs Capacity Building between Maldives Customs Service (MCS) and CBIC India,
- MoU on Parliamentary Cooperation between Lok Sabha and Majlis,
- MoU between the Judicial Services Commission (JSC) of Maldives and the National Judicial Academy of India (NJAI),
- MoU between Election Commission of India and the Elections Commission of Maldives,
- MoU between Public broadcaster Public Service Media (PSM) and Prasar Bharati,
- MoU between Auditor General’s Office (AGO) in the Maldives and the CAG
- Since 2019, more than 2200 Maldivians visited India for various in-person training programmes. Similarly, more than 1600 virtual training slots in different subjects have been offered to Maldivians.
Development Cooperation (Grants/ LoCs/ Assistance)
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The major completed and ongoing development assistance projects executed by India are:
- Indira Gandhi Memorial Hospital: The hospital was built with Indian Grant Assistance in 1995. Major renovation of IGMH funded by GoI was completed in June 2017 at a cost USD 6.2 mn.
- Maldives Institute of Technical Education (now called the Maldives Polytechnic): The MoU for setting up Maldives Institute for Technical Education (MITE) was signed in March 1992. MITE was completed at a cost of INR 12 Cr and handed over to GoM in Sept 1996.
- India-Maldives Faculty of Hospitality & Tourism Studies: The faculty, built with Indian grant assistance of INR 64.5 Crore, was officially handed over to GoM in Feb 2014.
- Technology Adoption Programme in Education Sector in Maldives: The US$ 5.3 million project fully funded by GoI was launched in June 2011 to provide ICT training to Maldivian teachers and youth and for vocational training. The project concluded in Dec 2013.
- National College for Police and Law Enforcement (NCPLE): With GoI grant funding of USD 30 mn, NCPLE is the single-largest grant project executed by India in the Maldives.
- Construction of Ministry of Defence building is underway in Maldives with a GoI grant-in-aid assistance of US$ 5.74 mn and the project is expected to be complete in December 2023
- A cash grant of 6.5 mn to Maldives for important bilateral projects was announced to support the projects related to socio-economic development, particularly creation of infrastructure in the education, health or community development sectors. Total 18 projects including building of community / convention centres, community outdoor gyms & children parks, coastal protection, street lighting, student ferry between islands, vehicles for city councils, police infrastructure, sports infrastructure, inclusive education units, school classrooms project, emergency health unit, etc. across islands were taken up for implementation. All of projects have been completed.
- High Impact Community Development Projects (HICDPs) under grant: An MoU between India and Maldives regarding grant assistance of MVR 85 million for implementation of HICDPs through Local Bodies was signed in March 2019. The MoU was revised in July 2021 to enlarge the grant assistance to MVR 155 million from MVR 85 million. In January 2023, MoU for additional grant assistance of MVR 100 million for the HICDPs scheme was signed. A total of 47 HICDPs are underway, out of which 08 have been completed and 07 have been inaugurated.
- Infrastructure & Connectivity Projects under Exim Bank Line of Credit of US$ 800 million for which Credit Line Agreement between Ministry of Finance, GoM and EXIM Bank of India was signed in March 2019. A USD 100 million supplementary LoC was announced in August 2022.
- A total of 6 GoI Lines of Credit (LOCs) worth USD 1430 million have been extended to the Government of Maldives (GoM) so far in the fields of housing, development projects, connectivity, sports infrastructure, and defence projects etc. Under these LOCs, contracts worth USD 865.17 million have been covered and disbursements worth USD 381.07 million have been made. Out of the 16 projects included under these LOCs, 1 project has already been completed, 10 projects are currently under execution, and 5 projects are in tendering stage.
- USD 50 million Defence Line of Credit: The LoC was concluded in Feb 2021.There are 5 projects identified under this LoC and tendering process is underway for procurement of various items requested by MNDF as per the defense requirement of GoM.
- USD 40 million Sports Line of Credit: The LoC was concluded in Sept 2021 to develop the sports infrastructure across the islands. There are 5 Projects identified under this LoC.
- Projects being implemented under LoCs:
- Water and Sanitation in 34 Islands: The project seeks to improve water supply and sewerage facilities in 34 identified islands by installing proper water supply distribution network, ensuring protection of ground water aquifer and sustainable water source management. The project was awarded as 6 packages to 4 Indian contractors after a tendering process in March 2021. Work is nearing completion.
- Addu Development Project (Roads and Land Reclamation): This is a key infrastructure project required for Addu to establish itself as the southern regional hub of Maldives. The scope includes roads, street lighting, storm water drainage, shore protection and land reclamation for the development of tourism infrastructure. The contract for roads component was awarded in Feb 2021 to AFCONS and was jointly launched by President Solih and EAM in March, 2022. Work is progressing well. Also, in March 2022, GoM awarded contract for the Land Reclamation portion of the project to a Dutch company “Van Oord’ to carry out a total reclamation of 194.3 hectares of land.
- Expansion of Maldives Industrial Fisheries Company Limited (MIFCO) facilities in Felivaru and Gemanafushi: MIFCO currently collects 60% of skipjack tuna caught by the fishermen at a fixed price set by Government. MIFCO has the capacity of adding value to 40% of the collection, while the rest is exported as frozen tuna, resulting in the export of frozen tuna becoming a loss-making operation, affecting the sustainability of the company. Contract to develop the cold storage facilities in the MIFCO Felivaru and Gemanafushi was awarded and the agreement was signed between MIFCO and Rinac India Limited on 18 January 2023.
- Cancer Hospital: Proposed hospital will be a model centre and State of Art Cancer Facility in Maldives, connecting their 150+ health centers on various islands. In Oct 2020, GoM requested for change of location of the Hospital from Hulhumale to Laamu. The project will be executed under the supervision of TATA Memorial Centre (TMC). The project has been formally included under the Line of Credit and financial closure was announced in August 2022. The process for identifying contractor and consultant is underway.
- Gulhifalhu Port project: The objective of this project is to relocate the congested Malé Commercial Harbour and warehousing from Malé to Gulhifalhu Island (which is in Greater Malé region). GoM envisages development of Gulhifalhu International Port as a modern, technologydriven, globally competitive port inclusive of warehousing and logistic zones that could serve the requirement of Maldives for next 35 years.
- Hulhumalé Cricket Stadium: During EAM’s visit to Maldives in March 2019, GoM requested Indian assistance for the construction of cricket stadium in Hulhumalé, to which India agreed. The project was approved by GoI on 03 July 2020 and was included under the GoI LoC of USD 800 mn.
- Airport Redevelopment Projects in Hanimaadhoo and Gan: The EXIM Bank of India is supporting the redevelopment of airports in Hanimaadhoo and Gan. GoI has funded the DPRs for both these projects which have been prepared by the Airports Authority of India. GoM has awarded the contract for Redevelopment of Hanimaadhoo in September, 2022 to JMC Projects India Pvt Ltd. The groundbreaking ceremony held on 18 Jan 2023, during the visit of EAM to Maldives and in the presence of President Solih marked the commencement of project. In Feb 2023, Ministry of Economic Development awarded the contractor to Renaatus Projects Private Limited of India for development of the Gan International Airport.
- Greater Male Connectivity Project: The project aims to connect Male to Villingili, Gulhifalhu and Thilafushi islands through a series of bridges, causeways, and roads. The project is crucial for the proposed Gulhifalhu Port, and will be a major catalyst for the Maldivian economy in the future through jobs and economic activity. It is funded through a separate $ 400 million LoC and $ 100 million grant from India.
- USD 50 million Defence Line of Credit was concluded in Feb 2021. Pre-qualification and tendering process is underway for procurement of various items requested by MNDF in concert with the EXIM Bank of India. USD 40 million Sports Line of Credit was extended to the Maldives in Sept 2021 to develop the sports infrastructure across the islands.
- Projects under EXIM Bank’s Buyers Credit
- Social Housing projects in Hulhumale’ Phase II: On 23 Sept, 2021 EXIM Bank of India concluded two Agreements with FahiDhiriulhun Corporation Ltd (FDC) of Maldives to extend Buyers Credit of approx. USD 227 million for the construction of 4000 Social Housing Units (2800 units of 3 bedrooms and 1200 units of 2 bedrooms) in Hulhumale’ Phase II. The construction is being undertaken by National Buildings Construction Company (NBCC) and JMC Projects (India) Ltd. India announced USD 119 under Buyer’s Credit for additional 2,000 social housing units in Hulhumale.
- Road projects: Earlier, EXIM Bank had extended around $53 million in Buyers’ Credit to a Mohan Mutha- Ashoka Buildcon JV for development of roads in Hulhumale’ Phase I & II.
- Police Infrastructure Development project: Buyers Credit agreement extending USD 41 million to develop Police Infrastructure in Maldives was signed during H.E. President Solih's visit. The ground breaking ceremony was held at Thulusdhoo island on 10th August 2022.
- The National College for Policing and Law Enforcement Studie (NCPLE), a USD 30 million project and India’s largest grant project in the Maldives, was jointly inaugurated by President Solih and EAM during the latter’s visit to Addu in March 2022. The facility has been handed over to the Maldives Police Service.
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Special Endeavour: Humanitarian Assistance
- India was the first to assist Maldives during the 2004 Tsunami as well as the water crisis in Malé in Dec 2014. These three incidents (in 1988, 2004 and 2014) had established the advantages of India’s proximity and capacity to come to Maldives’ rescue in distress vis-à-vis any other country and are widely acknowledged by the government and people of Maldives. India’s swift dispatch of 30,000 doses of measles vaccine in Jan 2020 to prevent an outbreak in the Maldives, and India’s rapid and comprehensive assistance to the Maldives since the COVID19 pandemic began has further reinforced India’s credentials of being the “first responder”.
Special Endeavour: Heritage Restoration
- GoI is supporting restoration of Hukuru Miskiiy (Friday Mosque) in Malé under Indian Grant of INR 8.95 crores. An ASI team is currently working with the local Ministry of Arts to implement the project.
