• Eight years after the project was first broached, India and Maldives have signed an agreement to develop and maintain a coastguard harbour and dockyard at Uthuru Thilafalhu – a strategically located atoll near the Maldivian capital of Male

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• Defence Line of Credit:
• It was signed pursuant to the request by the Government of Maldives in April 2013 for India’s support and cooperation in enhancing the capability of the Maldives Defence Forces in maritime surveillance, and subsequent requests in October 2015 and March 2016.
• It is seen as key to India’s and Maldives’ strategic interests, particularly given China’s increasing footprint in the Indian Ocean Region.

Assistance to Build Dockyards:

• A dockyard will be developed at the Uthuru Thila Falhu (UTF) Naval Base with Indian assistance, a few miles northwest of Male, which will strengthen the Maldivian defence capabilities.
• The agreement is part of the defence action plan signed in 2016 by then Maldivian President Abdulla Yameen Abdul Gayoom during a visit to India.
• Indicating deepening security cooperation, an agreement to develop, support and maintain a Maldives National Defence Force Coast Guard Harbour at Sifavaru was also signed.
• India will also support development of other infrastructure needed for the harbour, support the development of communications resources and radar services, and provide training.