India has begun discussions with the government of President Dr. Mohamed Muizzu on the plan to set up an Indian consulate in Addu city.

The two countries have not yet officially announced it.

A reliable source told Adhadhu that India is ready to give the opportunity to set up an additional Maldivian consulate in an Indian state in exchange for setting up an Indian consulate in Addu.

Currently, there is a Maldivian High Commission in New Delhi and a Maldivian Consulate in Trivandrum.

The Indian Cabinet approved the establishment of a consulate in Addu in 2021. However, it was stalled because the former Maldives government had not given approval.

The opposition at the time, the Progressive Party of Maldives-People's National Congress (PPM-PNC) coalition, protested against setting up an Indian consulate in Addu and started the Save Addu campaign.

Some politicians who campaigned against the Indian consulate in Addu are now Cabinet Ministers in the current government.

While the Indian government has decided to rollover a USD 50 million Treasury Bill for an additional year upon the request of the Maldives government, Adhadhu has learnt that India raised the issue of Uthuru Thila Falhu (UTF) during discussions.

The former government had awarded India the construction of a port for the Maldives National Defense Force (MNDF) at UTF. But the current government awarded a contract to a Chinese company for a large-scale agricultural project at UTF in March this year.

Indian media earlier reported that India had concerns over the handover of the UTF to China. A source with information on the matter told Adhadhu that Indian government representatives have officially raised the issue during discussions for the rollover of a USD 50 million loan.

Ties between India and the Maldives deteriorated shortly after President Muizzu assumed office. He came to power with a pledge to remove Indian soldiers based in the Maldives to operate two helicopters and a Dornier aircraft.

Instead of India, President Muizzu chose to strengthen ties with China. His first state visit was also made to China. He directed a harsh verbal attack against India after the visit and accused the country of bullying.