Everything you wanted to know about Maldives and GMR.

1.What is GMR?

GMR is an infrastructure company  headquartered in Bengluru .It is involved in the operation of Airports in Delhi, Hyderabad and Turkey.

2.What exactly happened in Maldives?

GMR had won the right to upgrade and operate the Ibrahim Nasir International Airport in Male in November 2010 for 25 years through an international tender which was overseen by International Finance Corporation.
In 2012 GMR started charging an airport development charge (ADC) of $25 per passenger . It was struck down by the local court. GMR managed to convince the then government led by Mohamed Nasheed to offset this loss of income from the revenues that GMR was ­supposed to pay the Maldivian state.So,it had to pay lesser revenues to the Government.
After the regime change the current government in Male headed by President Mohamed Waheed reversed the decision saying the contract was signed under “dubious” conditions and was “void”
Also there were allegations of corruption against the company.

3.What legal course did GMR take?

GMR filed for arbitration in Singapore court.

4.What was the Court’s ruling?

The high court of Singapore initially suspended the Maldivian Government’s decision last week to terminate the $500 million contract, the single largest India FDI in the Maldives. But later it overturned this decision by another ruling that Maldives government has the “power to do what its wants including expropriating the airport”, dealing a severe blow to GMR .

5.What are the consequences of this fiasco?

Bilateral ties between India and Maldives will be affected and also the growing Chinese influence in the island nation and the Indian Ocean poses a serious threat to India.


To conclude, India should not become a bully and instead address the concerns of the Maldivian Government.Taking extreme steps such as blocking economic aids  will not serve any purpose other than forcing Male to lean more towards China.

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