India’s RVNL awarded project to develop UTF base

Rail Vikas Nigam (RVNL) – an Indian state-owned enterprise – has been awarded the project to develop Uthuru Thila Falhu (UTF) base.

Indian news agencies report the contract is valued at USD 186 million (MVR 2.9 billion).

According to Indian newspaper Business Today, the order for the project was placed by India's External Affairs Ministry.  RVNL is required to complete the project within two years.

According to Indian news agencies, RVNL’s shares jumped by 4.96 percent on Wednesday, after the company received the letter of authorization for appointment as project implementation agency for the UTF project.

The governments of Maldives and India signed the agreement to develop the UTF base in February 2021. The project involves developing a modern Coast Guard port and dockyard at the base.

Discussions regarding the UTF project began in 2013 during former president Dr. Mohamed Waheed Hassan Manik’s administration, and continued in 2016 during former president Abdulla Yameen Abdul Gayoom’s administration.

However, the signing of the agreement sparked controversy, stemming from allegations by opposition Progressive Party of Maldives (PPM) that the agreement allows armed Indian military personnel to operate at the base. The allegations have been repeatedly denied by the Maldives National Defense Force (MNDF), which states Maldives will have full ownership of the facilities established at the UTF base under the project, and that the facilities will be operated by MNDF.

The controversy sparked an inquiry by the Parliament’s Security Services Committee (241 Committee), which reviewed the contents of the agreement – which has not been made public – and ruled it did not pose a national security threat.

However, PPM continued to allege the agreement posed a threat to Maldives’ independence and sovereignty and launched the ‘India Out’ campaign.

The campaign was criminalized under a presidential decree, and the opposition later decided to suspend the campaign.