Cornered by court, politics, GMR says will hand over airport ops at midnight to Maldives

Dec 07 2012, 21:09 IST
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GMR says will hand over airport ops at midnight to Maldives (Reuters) GMR says will hand over airport ops at midnight to Maldives (Reuters)
SummaryGMR's bid to deploy support from all quarters to prevent being shunted out of project prove futile.

organised in Male by certain right-wing coalition partners of the current regime.

Anti-Indian statements also seeped into the protests that were held in the Indian ocean archipelago.

The Male airport venture has been the most profitable for GMR in terms of its airports business segment. The company has so far invested about USD 250 million on managing and upgrading the facilities at the Male airport.

The bone of contention between GMR and Maldivian government is levy of an Airport Development Charge (ADC) of USD 25 per passenger and USD 2 per passenger insurance surcharge. The levy was supposed to be charged from January 1 this year but a local civil court had struck down the proposal in December last year.

After that, the then government headed by Nasheed agreed to compensate GMR against the levy. However, the decision was reversed by the new regime early this year, leading to GMR filing for arbitration in a Singapore court.

GMR claims that it has dues of over USD 3 million on the Maldivian government.

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