India Inc. jumps in to support GMR; criticizes Maldives' unilateral behavior
India Incorporated has poured in its full support in favor of GMR, the Indian airport developer after the Maldivian government scrapped the Male International Airport contract with the Indian developer worth $ 500 million USD and overlooked the rulings of a Singapore court that asked Maldives to maintain a status quo.
“Confederation of Indian Industry (CII) extends its full support to the Union Government on the steps taken in the wake of termination of concession agreement of GMR Male International Airport Pvt Ltd (GMIAL), a joint venture between GMR – MAHB (Malaysia Airports Holding Berhad) consortium and MACL,” says a statement by CII.
“It is extremely important for all the concerned parties to respect the sanctity of the Concession Agreement and abide by the provisions provided therein to resolve any dispute within the stipulated legal framework,” said Chandrajit Banerjee, Director General, CII in the statement.
Assocham said that the attitude of Male Government, despite the rulings of Singapore High Court, will shake the confidence of the investors and will jeopardize the spirit behind the cooperation of the SAARC Nations.
According to reports, which quoted sources, an upset India
has put on hold $25-million budgetary commitment to Male.
Appealing the Male Government to respect the judgment given by the Singapore Court, the apex industry body Assocham said that this was high time that the Government of India should activate their diplomatic relation to convince Male Government not to terminate the concession agreement.
Assocham's Secretary General D.S. Rawat in a strong communication through Male Embassy in India conveyed its displeasure against any unilateral termination of economic agreements while saying that it will be determent to the growth of the nations and might even sow seeds of suspicion amongst the potential investors in all times to come.