• An official announcement by Seychelles President Danny Faure cancelled the agreement with India for the development of Assumption Island (a single coral island in the Outer Islands of Seychelles) in the Indian Ocean.
• Faure made it clear that he would have no further discussions on the subject with Prime Minister Narendra Modi.

• The decision by the Seychelles President to drop the deal in the face of protests over a perceived loss of sovereignty is a blow to the government’s “SAGAR” (Security and Growth for All in the Region) programme, announced by Mr. Modi during a visit to Indian Ocean Rim (IOR) countries in March 2015.
• It also comes amid India’s troubles with another IOR country, the Maldives, where the government has demanded that India withdraw two helicopters, pilots and personnel from its atolls that had been sent there to help with maritime patrols.
• Discussions regarding development of Assumption Island began in 2003 but were formalised in 2015 during Mr. Modi’s visit.
• The deal was to include a 20-year access to the base, as well as permission to station some military personnel on ground with facilities on the island funded by India, owned by the Seychelles and jointly managed by both sides.
• India’s defence maritime cooperation with the Seychelles is long-standing and some of the upgrade work on Assumption Island was already under way.
• The cancellation of the agreement in a strategically important island could have far-reaching implications

The Hindu