Prime Minister Narendra Modi kisses Maldives as new leader takes office, China out of favor | India News

MALE: The Maldivian President Elect, Ibrahim Mohamed Solih, takes office Saturday, soliciting the help of India and the United States to get out of a mountain of Chinese debts that his predecessor had accumulated in the frenzied development of the coral islands.

The surprise defeat of pro-Chinese strongman Abdulla Yameen opened the window to India, the traditional political partner of the strategic outpost, for it to take back the lost ground facing in Beijing in its struggle for regional domination.

Prime Minister Narendra Modi will be the most prominent visitor at the inauguration of the Malé capital's national football stadium. On the other hand, China's Minister of Culture and Tourism, Luo Shugang, will be at the top of the list.

"I will convey to the new Government of Maldives … my Government's willingness to work closely together to achieve its development priorities, especially in the areas of infrastructure, health care, connectivity and the development of human resources, "said the Prime Minister in a message on Facebook.

Prime Minister Modi's presence marks the end of years of icy relations due to Yameen's membership of China, a relationship that has deepened India's concerns over its encirclement of countries inclined towards Beijing .

In Sri Lanka, the rivalry between New Delhi and Beijing has been one of the triggers for a political crisis in recent weeks.

"INDIA PRIME"

Discreet parliamentarian Solih, a seasoned legislator, has pledged a policy of "India first" in the Maldives, saying the small nation of just over 400,000 residents needs strong ties with his immediate neighbor.

His team is also looking at millions of dollars in China's investments, as well as the country's associated debt to Chinese lenders and ways to restructure it. Solih said investigations would be launched to find out what was happening and address accountability issues, reporters Adam Azim told reporters.

"We were led to believe that it was about 1.5 billion, Chinese debt, but it could be worse," said another member of the highest team Solih, who met with officials of the Ministry of Finance during the transition following the September elections.

He added that the team had already sought financial assistance in India, the United States and Saudi Arabia to deal with the debt.

"We need $ 200 million to $ 300 million immediately to start budget support," said the advisor.

A debt of $ 1.5 billion would represent more than a quarter of the country's annual gross domestic product. Another member of the new president's economic team said that firm support proposals had been discussed with Indian and US officials.

BRIDGE "FRIENDSHIP"

Signs of the infrastructure boom are ubiquitous in Male, from where tourists are taken in high-speed boats to luxury hotels built on atolls in turquoise waters.

Some 400 Chinese workers have completed this year the China – Maldives Friendship Bridge, which stretches for one kilometer and which overlooks the city connecting the airport from an island to the capital city.

The airport itself is expanding, with a second runway to accommodate the thousands of tourists arriving each day.

Airport development is a particularly difficult point in India after the Maldives government canceled a $ 511 million contract with the Indian GMR infrastructure and subsequently signed the contract with Beijing Urban Construction Group Company Limited.

The Yameen administration has also opened new islands and lagoons among the 1,192 islands constituting the collar-shaped archipelago for the development of seaside resorts.

"All these agreements are so secret that we will need several weeks to understand what has happened," said Mariya Ahmad, MP and spokesperson for Solih.

Sensing an opportunity, India told Solih's team that she was ready to help, government officials said in New Delhi and Maldivian authorities in Malé.

India had provided a $ 75 million line of credit a few years ago, a third of which had been used before the cold-blooded deal with the previous government, said a government official.

There is also a currency exchange agreement between the Reserve Bank of India and the Maldives Monetary Authority that could help maintain financial stability, the official said.

Prime Minister Modi, who is making his first visit since taking office in 2014, will be talking to Solih before the inauguration.

India has a long-standing defense cooperation agreement with the Maldives, which provides for coastal security and patrols in its exclusive economic zone. But Yameen considered this cooperation as a cover for surveillance and had asked India to withdraw two military helicopters as well as 50 military personnel this year, claim that was denied by New Delhi. However, officials in Delhi now expect the visas of the personnel involved in the operations to be renewed.

"In accordance with its neighborhood policy, India wants to work closely with the Maldives to deepen their partnership," said Foreign Ministry spokesman Raveesh Kumar.

A diplomatic source said the United States is also ready to intensify its relations with the Maldives. His relations were also tense because of Yameen's crackdown on his political rivals and Supreme Court justices.

But China remains an important player, given the investments of its state-owned companies and the influx of Chinese tourists. This means that the relationship is not likely to erode completely.

Between January and October this year, 247,911 Chinese tourists arrived, representing one-fifth of visitors. India, which is much closer geographically, provided only 5%.

The Chinese Embassy has not responded to a request for comment regarding concerns that its plans have plunged the Maldives into financial difficulties. Shortly after Solih's victory, Beijing said it hoped that the new government would maintain the continuity of its policy and create good conditions for Chinese companies.