India promises $500 mn for connectivity project in Maldives

India will finance a major connectivity project in Maldives through a $400 mn line of credit and $100 mn grant. The 6.7-km Greater Malé Connectivity Project (GMCP) will be the largest civilian infrastructure project in Maldives, connecting Malé with three neighbouring islands – Villingili, Gulhifahu and Thilafushi. Implementation of the GMCP was a key election promise of the ruling MDP. India is also extending financial support for construction of a port in Gulhifahu. Maldives is also the first neighbouring country with which an air bubble is being operationalised. India will also renew quotas for supply of essential commodities to Maldives for the year 2020-21.