Seychelles calls off key military-deal with India before president's visit
What's the story
Weeks before a New Delhi visit, Seychelles President Danny Faure called off a significant defense deal that would have allowed India to expand its strategic reach in the Indian Ocean.
The agreement for an Indian naval base at Assumption Island was formalized in 2015, and finalized this January.
But since the document was leaked online in March, Seychelles' opposition has put up strong resistance.
History
A brief history of the deal
The agreement for the Development, Management, Operation and Maintenance of Facilities on Assumption Island was signed in 2015.
However, it hadn't been ratified by former president James Michel. In August'17, Faure said it would have to be renegotiated, mainly over ownership and sovereignty issues.
Former Indian foreign secretary S Jaishankar visited Seychelles in October to conduct talks. Negotiations ended only after the opposition's nod.
Agreement
What did the agreement entail?
Under the agreement, India would have developed infrastructure on Assumption Island including renovating the airstrip, upgrading the jetty and constructing quarters for the Seychelles Coast Guard.
Other countries can use the facilities "subject to concurrence of both parties."
However, Seychelles can suspend the utilization of the military facilities if India is at war.
The agreement would be valid for 20 years, renewable for 10.
Protests
Why was it facing protests?
Despite finalization, protests in Seychelles over the deal didn't die. Concerns included adverse environmental impact, possibility of getting involved in the India-China rivalry, and reports that the island was being "sold off" to India.
On June 4, Faure said at a press-conference that the deal "won't move forward."
Instead, "in next year's budget, we'll put funds to build a coastguard facility on Assumption ourselves."
Impact
What does it mean for India?
Faure has asserted the issue won't be discussed during his India visit on June 26. The Indian Foreign Ministry hasn't commented yet.
However, it would be a significant loss for India: it has been looking to consolidate its position amid China's growing naval presence.
Assumption Island and Agalega Island (Mauritius), with which New Delhi already has a deal, would be key acquisitions for India.