360° UPSC Mains Analysis

Maldives' largest infra project advances with India's support after final segment of Thilamale Bridge is installed

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Institutions

Ministry of External Affairs (MEA)
Role: Acts as the nodal ministry responsible for formulating and executing India's foreign policy, including the 'Neighbourhood First' policy, and overseeing the implementation of the $100 million grant component of the GMCP.
Type: executive
Export-Import Bank of India (Exim Bank)
Role: A statutory corporation established under the Export-Import Bank of India Act, 1981, responsible for administering the $400 million Line of Credit (LoC) to the Maldives for the Thilamale Bridge project.
Type: statutory

Acts & Statutes

Export-Import Bank of India Act
Year: 1981
Relevance: Governs the Export-Import Bank of India (Exim Bank), which acts as the nodal agency to operationalize and manage the $400 million Line of Credit (LoC) extended by India to the Maldives for the GMCP.
Key Provisions: Section 10 empowers the Exim Bank to grant loans and advances outside India and coordinate with international financial institutions to promote foreign trade and development.

Judicial Precedents

Case: Maganbhai Ishwarbhai Patel v. Union of India
Year: 1969
Significance: The Supreme Court ruled that the executive power to implement international treaties under Article 73 does not require legislative backing or parliamentary legislation unless the treaty restricts or infringes upon the fundamental rights of citizens or modifies existing municipal laws.
Case: Ram Jawaya Kapur v. State of Punjab
Year: 1955
Significance: Established that the executive power of the Union is co-extensive with the legislative power of Parliament. This enables the executive to undertake international development projects and financial commitments (like grants and Lines of Credit) without prior legislative enactment.

Governance Framework

The Seventh Schedule of the Constitution places 'Foreign Affairs' (Entry 10) and 'Entering into treaties and agreements with foreign countries and implementing of treaties, agreements and conventions with foreign countries' (Entry 14) under List I (Union List). This grants the Central Government exclusive legislative and executive competence to negotiate, fund, and execute international connectivity projects like the Greater Male Connectivity Project (GMCP) without requiring state-level concurrence.

Constitutional Articles

Extent of executive power of the Union
Article: Article 73
Relevance: Provides the constitutional basis for the Government of India to exercise executive power to enter into and implement international agreements and treaties, such as the bilateral contract for the Greater Male Connectivity Project (GMCP).
Legislation for giving effect to international agreements
Article: Article 253
Relevance: Grants Parliament exclusive power to make laws to implement international treaties, agreements, and conventions, reinforcing the Union's supreme authority in foreign policy and international development assistance.
Promotion of international peace and security
Article: Article 51(c)
Relevance: A Directive Principle of State Policy (DPSP) that directs the State to foster respect for international law and treaty obligations, guiding India's proactive developmental assistance and regional connectivity initiatives like Vision 'MAHASAGAR'.

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