Maldives cabinet for termination of GMR contract

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Agencies: New Delhi/Male , Nov 27 2012, 19:58 IST

Maldives today said its cabinet has recommended termination of a contract given to GMR Group for developing Male Airport, a project awarded to the Indian group during the previous regime of island nation.

The Maldives cabinet in a meeting today decided to terminate the contract and a notice to this effect was issued to GMR Group, Maldivian President's Press Secretary Masood Imad said in a statement.

The USD 500-million project was hanging in balance ever since the regime change in Maldives earlier this year. The GMR group had won the contract during the regime of former President Mohamed Nasheed.

Some coalition partners of the current regime headed by Mohamed Waheed had also held a rally against GMR on November 3.

The airport contract was awarded to GMR through a 10-month long global competitive bidding process run by the then Maldivian government headed by Nasheed.

Nearly eight months after the regime change in Maldives, some Indian companies present there, including GMR, are blaming political interference for creating "undue challenges" for them.

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Reader's Comments (2)| Post a Comment

We count loss

Dhivehin | 27-Nov-2012Reply | Forward

Since after GMR started operation in Male' the government have to pay nearly 2.6 million per month to GMR. This is not acceptable and the curent president is putting things inthe right position. When GMR signed the agrement they havent studied the process, ,laws and regulations. instead they trusted former president and closed the case. So now they are in trouble.

Maldives

Gupta | 27-Nov-2012Reply | Forward

It is time for India to send the army to Maldives to protect Indian nationals and Indian interests. We just cannot afford another terrorist state in our back yard.