The government of India has extended an additional MVR 70 million to Maldives, for high-impact community development projects.

While the MoU granting MVR 85 million was signed back in March 2019 during former External Affairs Minister, the late Sushma Swaraj's visit to the island nation, it was renewed on Friday during Maldivian Foreign Minister Abdulla Shahid's ongoing trip to India.

Shahid signed the MoU on behalf of the Maldivian government, while India's External Affairs Minister Dr. S Jaishankar signed on behalf of the neighboring nation.

Ministry of Foreign Affairs said that the renewed MoU "increases the size of the Indian grant assistance to High Impact Community Development Projects in the Maldives".

The aim of the Indian Grant Assistance for Implementation of High Impact Community Development Projects is to set up the framework to support small and effective developmental initiatives which will be implemented through local bodies, government-to-government institutions; and jointly work towards successful implementation of small projects which contribute to economic and social development and improvement of public welfare.

The primary themes of projects covered under the MoU are socio-economic development, livelihood activity, conservation of environmental and cultural heritage, empowerment of women and child welfare and skills development.

High Commission of India in Maldives (HCI) said that the new MoU sanctions an additional MVR 70 million "to take up implementation of nine or 10 high-impact projects in the Maldives through Island and City Councils".

The high commission noted that island councils across the Maldives are currently implementing 12 high-impact projects through a grant of MVR 85 million extended by India back in March 2019. These include installation of a neighborhood fish plant at Addu City’s Hithadhoo, Maradhoo, and Hulhudhoo, and Noonu Kendhikulhudhoo. Also included is the development of tourism zones, in Addu City’s Hithadhoo, Feydhoo, Maradhoo, Meedhoo, and Hulhudhoo, and the introduction of a Drug Detox Center in Addu City’s Hulhudhoo, as well as development of farming industry in Hanimaadhoo, and finally, a bottling factory in Haa Alif Hoarafushi.

Further, the Indian high commission emphasized that high-impact community development projects "constitute an important dimension of the dynamic development partnership between India and the Maldives" adding that they also contribute to the Maldivian government's decentralization efforts.

Foreign Minister Shahid, who traveled to India on Wednesday, met with Prime Minister Narendra Modi on Friday. He traveled to India on the invitation of the Indian government, in his capacity as the President-elect of the United Nations General Assembly (UNGA).

While Shahid won the UNGA presidency in June, the Indian government had announced its support for him during Foreign Secretary Harsh Vardhan Shringla’s visit to Maldives in November 2020.

Shahid has since returned to the Maldives after concluding trip to India.