Maldives action against GMR unilateral: Assocham

Industry body Assocham on Friday termed as "unilateral" the Maldives government's decision to scrap the USD 500-million contract given to the GMR Group for developing the Male airport and sought talks between the two sides to find a solution.

In a communication to the Maldivian Ambassador, Assocham secretary-general DS Rawat said the government in Male "must provide the opportunity to GMR Group to conduct discussions to find an amicable solution. This will certainly further strengthen the spirit of economic relations amongst the Saarc nations."

Expressing concern over the "unilateral decision" of the Maldives government, he said the move had "virtually violated the spirit of the international concession agreement that was signed after bidding of the global tender by the GMR Group".

The chamber also urged the government there to take immediate steps to protect the interests of GMR, its employees  in Male and the Indian banks.
Rawat lamented that this was the "largest investment" (over USD 500 million) by an Indian company in the Maldives, including a USD 368-million loan from Indian banks, which had "unfortunately entered into a controversy".