GMR Infra rises 6%, GMIAL gets compensation of USD 270 mn

Moneycontrol Bureau Shares of GMR Infrastructure advanced nearly 6 percent intraday Friday as its subsidiary GMR Male International Airport (GMIAL) has been awarded compensation of USD 270 million by the three member international arbitral tribunal."The compensation covers the debt, equity invested in the project along with a return of 17 percent and also termination payments and legal costs. The compensation is net of taxes that GMIAL may be required to pay in the Maldives," as per company release.GMIAL had entered into a concession agreement with Government of Maldives (GoM) and Maldives Airport Company (MACL) for modernisation and operation of Ibrahim Nasir International Airport (INIA) in 2010. The concession agreement was wrongfully repudiated by the GoM and MACL on November 29, 2012 alleging that the same was void ab initio. After detailed further proceedings, the tribunal has issued its final order whereby it has awarded compensation to GMIAL.In June 2014, the arbitration tribunal had held that GoM and MACL had wrongfully repudiated the concession agreement of GMIAL and that they were jointly and severally liable in damages to GMIAL for loss caused. According to GMR spokesperson, “It has always been our firm belief that the cancellation of concession agreement by Government of Maldives was wrongful. We are happy to note that the Tribunal has unequivocally upheld this stand and closed the adjudication with a final award of compensation."At 09:35 hrs GMR Infrastructure was quoting at Rs 14.16, up Rs 0.55, or 4.04 percent on the BSE.Posted by Rakesh Patil