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Assocham seeks govt intervention against GMR proj termination

Last Updated: Friday, November 30, 2012 - 22:21

New Delhi: Industry body Assocham on Friday sought immediate government intervention against unilateral decision of Maldives to terminate GMR airport project there, to protect the interest of the company and Indian banks.

The move violates the spirit of International Concession Agreement which was signed after biding global tender by the GMR Group, the chamber said.

In a communication to the Maldives Embassy in New Delhi, Assocham Secretary General D S Rawat said their government must provide the opportunity to GMR Group to have discussion and find an amicable solution.

This will certainly further strengthen the spirit of economic relations amongst the South Asian Association for Regional Cooperation (SAARC) nations, Rawat said.

The chamber has also urged upon the government to take immediate steps as may be necessary to protect the interests of GMR, its people working in Male as well as the Indian banks against such irrational moves, Assocham said.

Maldives, on Tuesday, announced that it was terminating contract with GMR given by the previous regime for developing Ibrahim Nasir International Airport (INIA) at Male and issued it a notice to hand over the airport within 7 days to state-owned Maldives Airports Company Ltd.

GMR group, through a consortium with Malaysia Airports Holdings Berhad (MAHB), had won the USD 500 million contract on June 24, 2010 through a global competitive bidding process to upgrade and manage the Male airport for 25 years.

The contract, termed as single largest foreign direct investment in Maldives, was awarded by the then Maldivian government headed by Mohamed Nasheed.

However, the project was hanging in balance ever since the regime change in Maldives earlier this year as some local political parties, who are now in power, were opposed to GMR levying a USD 25 per passenger Airport Development Charge (ADC). The issue of charging ADC is currently pending in an arbitration court in Singapore.


First Published: Friday, November 30, 2012 - 22:21
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