Indian government extends line of credit worth 18 million to Maldives

The Indian government has extended the Line of Credit worth of 18 million US dollars to the Maldives government for the expansion of fishing facilities at Maldives Industrial Fisheries Company (MIFCO).

The Indian High Commission in the Maldives informed about the line of credit while announcing the expansion of MIFCO. The commission also added how fishing is deeply connected to the Maldivian way of life and has been a key driver of the economy through exports.

The Line of credit worth of 18 million US dollars extended by the Indian government comes with a repayment tenor of 20 years with a grace period of 5 years.

Key Highlights:

• As per the official statement, an estimated MVR 18 million will be utilized for the development of a 50-tonne ice plant in Gemanafushi, in addition to a 100-tonne ice storage facility.

• The project also plans for the investment in fish collection and storage facilities and setting up of a fishmeal plant and tuna cooked plant.

• MIFCO’s Felivaru Fisheries Complex has also been scheduled for the expansion through the development of storage facilities and fish collection.

• The government has expressed hope that the project will benefit the Maldives by increasing fish collection and the storage capacity and by making collection operations more efficient which will enable the country to acquire new markets.

• By the up-gradation of ice plants and increased values of Maldives fish products, the project will make way for the additional source of income.

India-Maldives partnership:

As per the Indian High Commission in the Maldives, the project will reinforce India’s time-honored bonds of partnership with the Maldives.

Both the countries continue to nurture growing partnerships in fisheries that will also include the ice plants being set up in Gaafaru (Kaafu Atoll), Kashidhoo (Kaafu Atoll), and Addu Atoll through Indian grants as well as several capacity-building programs.

The credit line agreement extended by India was signed by Ibrahim Ameer, Minister of Finance and Sudhattaa Mandal, India’s Export-Import (EXIM) Bank’s Chief General Manager.

As per the officials, all the loans will be issued through EXIM bank when the government of Maldives will present India with the proposals for future projects.