Advertisement

HindustanTimes Thu,17 Apr 2014

GMR eyes $1.1 bn compensation from Maldives

HT Correspondent, Hindustan Times  New Delhi, December 14, 2012
First Published: 23:31 IST(14/12/2012) | Last Updated: 23:32 IST(14/12/2012)

The GMR Group plans to to seek a compensation of over $1.1 billion from the Maldives government after the latter wrested control of the Ibrahim Nasir International Airport from the operator.

Advertisement

GMR and Malaysia Airport Holdings (MAL) had won the $500-million airport project in November 2010 to modernise and run the Male airport for 25 years in a tender process overseen by the World Bank.

MACL (state-controlled Maldives Airport Company Ltd), based on Maldivian government's instructions, had on November 27 terminated the contract -the country's biggest foreign investment project - a move that left New Delhi rattled.

A senior GMR official had said that the Maldives Attorney General had calculated the compensation at $700 million.

"However, it would be much more than that. Compensation due to GMR due to the illegitimate cancellation of contract by government of Maldives may put significant and avoidable financial burden on the people of Maldives," he added.

Advertisement
more from Business

'India's ratings to depend on new govt policies'

Standard and Poor's may upgrade India's outlook if the government that is elected next month addresses some of the country's fiscal and economic challenges through steps such as passing a goods and services tax.
markets
Advertisement
Most Popular
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved