India protests as Maldives cancels GMR project
28 Nov 2012
India has protested strongly against the Maldives' decision to immediately cancel its contract with GMR to build an international airport, saying the Maldives government's move would send "a very negative signal" to foreign investors. It also urged the island nation to ensure the safety and security of Indian interests and Indian nationals in that country.
The Maldives cabinet on Tuesday annulled the agreement made with GMR Group to develop and operate the Ibrahim Nasir International Airport (INIA) at Hulhulé Island near the capital Malé.
GMR, a subsidiary of Bangalore-based GMR Infrastructure Ltd, has been given seven days to leave the Indian Ocean island chain.
This was the Maldives' biggest foreign investment project, worth $511 million, and the move raises questions over the future of foreign investment in the islands renowned for luxury resorts.
The contract awarding the airport to GMR Group for 25 years was signed on 28 June 2010 by the then president Mohamed Nasheed's government, who was deposed by current President Mohamed Waheed Hussan.
The cancellation of the deal signed in 2010 follows President Waheed's failure to renegotiate terms, according to reports.