India asks Maldivian government for ways to resolve GMR problems

The Indian government has asked the Maldivian government, to consider ways to resolve the problems faced by GMR Group, which has been given the contract to develop Ibrahim Nasir Male’ International Airport.

According to Indian paper The Economic Times, the issue was raised in a meeting in India between Maldives’ Transport and Communication Minister Ahmed Shamheed and India’s Civil Aviation Minister Ajit Singh.

The Economic Times reported that an official statement had been issued, which states that India brought to notice the problems faced by the GMR Group, in the process of expansion and modernisation of the Male’ airport.

"The contentious issues include provision of airport development charges provided for in the agreement with the GMR but termed as unauthorized by a local court in Maldives and a demand for an additional runway not provided in the agreement," the statement said.

The previous government was heavily criticised by opposition groups for its decision to award the management of the airport to GMR Group.

Since the change of government, GMR has faced pressure from the current government, which was the opposition back then.

According to GMR, their efforts to develop the airport are being denied regardless of the fact that the agreement between the Maldivian government and GMR remains intact; which results in serious losses for the company.