India’s social housing project in Maldives
Date: 25 September 2021 Tags: MiscellaneousIssue
National Buildings Construction Company (NBCC) and JMC Projects (India) Ltd have signed a deal with Fahi Dhiriulhun Corporation of Maldivian government to build social housing units.
Background
Recently, the Maldivian government had signed a deal with AFCONS for the construction of the Greater Malé Connectivity Project (GMCP).
Details
-
The idea of social housing was conceptualized in 1990 with financial assistance from China. It was not implemented until now.
-
The social housing units is being developed in Hulhulmalé (phase 2) island. The Exim Bank has provided $228 million credit.
-
The project mainly involves construction of low-cost housing projects in the country. Fahi Dhiriulhun Corporation is the key player.
Importance
-
Close to 40% of Maldivian population lives in Male. Its density is one of the highest in the world due to lack of available space.
-
To decongest the city and clear space, the government is planning on developing other nearby inhabited islands.
-
The development includes construction of civic amenities such as hospitals, schools and industrial areas for encouraging people to relocate to other islands.
Importance for Maldivian economy
-
People spend a large amount of their income on paying exorbitant rents. Among the poor, about 68% of their income is spent on rent.
-
The project is designed to benefit the poor, disadvantaged and vulnerable sections, women and single-headed households and those people by disasters and displacement.
Impact on relationship
-
India has increased its presence in several developmental projects across the island nation since the Solih government took charge.
-
This position was occupied by China during the Abdulla Yameen regime. The change in stance is attributed to China’s debt diplomacy.
-
The country will be witnessing presidential elections in 2024 followed by Parliamentary elections. India would want the same government to return by virtue of such projects.