Cabinet approves MoU on ferry service between Maldives and Kochi
04 Jul 2019
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The union cabinet has given ex-post facto approval for a memorandum of understanding (MoU) between India and Maldives for the launch of passenger and cargo services by sea, which was signed on 8 June 2019 during the visit of Prime Minister Narendra Modi to Maldives.
India is a leading development partner of Maldives and has established many of the leading institutions of Maldives. Currently, India has provided $100 million stand-by credit facility (SCF) to Maldives, including long-term loans and revolving credit for trade.
Male, the capital and most populous city and Kulhudhuffushi, the third most populous city of Maldives are good prospects for introduction of ferry service from Kochi for both tourists as well as cargo. While Male is situated at a distance of 708 km from Kochi, Kulhudhuffushi is 509 km away. Kulhudhuffushi and the islands around are a major population centres in the northern part of Maldives and have a large number of resorts which could be possible tourist destinations for Indians.
Present connectivity involves flights to Male and sea planes to the resorts, which is an expensive option. On the other hand, connectivity with Kochi through sea could promote inbound tourism, particularly health and wellness tourism for India. A large number of Maldivians also travel to Kerala and other South Indian cities for educational purposes.
The proposed ferry service would also help to harness the potential opportunity in both passenger and cargo transportation by sea between the two countries. The proposed ferry service would also contribute in a big way to promote people to people contact and to boost bilateral trade.
