India on Thursday (August 13) announced a massive USD 500 million-package to Maldives with the purpose of augmenting travel connectivity and boost trade ties between the two sub continent nations in the Indian Ocean region.

External Affairs Minister S Jaishankar who held a meeting via video conference with his Maldives counterpart Abdullah Shahid on Thursday, announced that the whopping financial aid rendered by India will help in the funding of an air bubble transport mode which will facilitate movement of people from both nations for employment opportunities, tourism and during medical emergencies between the two SAARC countries. The first flight under the Air Bubble is expected to commence on August 18.

The mega infrastructure project will also help to provide an impetus to the  internal transportation within Maldives by connecting the capital city of Male connect with three neighbouring islands.

EAM Jaishankar said that this will be the highest civilian infrastructure project in the Maldives, connecting Male with three neighboring islands - Villingili, Gulhifahu and Thilafushi (new industrial zone) - by the construction of a bridge-and-causeway link spanning 6.7 km.

"Once completed, this landmark project will streamline connectivity between the 4 islands, thereby boosting economic activity, generating employment and promoting holistic urban development in the Male region," the MEA statement read.

The two ministers highlighted and harped on the 'time-tested' relations between India and the Maldives over decades and underlined the fact that the COVID-19 pandemic has not been an obstacle to slow down the pace of bilateral cooperation.

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He also announced that a direct cargo ferry service between India and Maldives will commence shorty to support the Greater Male Connectivity Project (GMCP) in the Maldives through a financial package consisting of a grant of USD 100 million and a new Line of Credit of USD 400 million.

The scheme is a first of its kinds as Maldives will become India's first neighbouring country with which an Air bubble is being operationalised to facilitate the movement of people, said the government. The air bubble is a testament of India's support to shore up tourism arrivals and revenues in the Maldives. Health protocols in both countries will be strictly followed," it read.

EAM underscored the significance of this service in enhancing bilateral trade and connectivity and in further boosting the economic partnership between the two countries. The cargo ferry service will enhance sea connectivity and provide predictability in supplies for importers in Maldives and exporters in India. It will also reduce logistics costs and times for traders, the statement read.