GMR-Maldives row: Where the dispute lies
- Hate speeches: Modi breaks his silence, says petty statements by 'BJP well wishers deviating poll campaign'
- Elections 2014 LIVE: Sharad Pawar attacks Narendra Modi over 'power concentration' in one man
- Would prefer to go to Pakistan than stop criticising Narendra Modi: Omar Abdullah
- Centre calls off trip over China no to Arunachal youth
- How is it our responsibility to stop Modi, ask Faizabadâs Muslims
However, after the contract was signed, the Maldives government changed. President Nasheed was replaced by President Waheed in a coup. This government claimed the contract was invalid. The airport is very significant for the nation, as out of its $2 billion annual GDP, about a fifth is made up of revenues that are connected to the airport.
Under the terms of the contract, Maldives had decided to make a passenger service charge a pass through item from the airport. In other words, the sum earlier being earned by the MACL now goes to the government directly. Instead it had allowed GMR to levy an Airport Development Charge (ADC) on the departing passengers, which GMR claims is an international experience.
The ADC was later turned illegal by a local court and could have been legalised had the country's Majlis approved such a charge. Before this could happen, the government changed in the coup. In the absence of such a charge the earlier government had allowed GMR to deduct the ADC revenues from the revenue share of the government. Due to this offset, the government has to pay $3.5 million to GMR for the current calender year period till November.
This charge has got caught up in the national legislature which projected that MACL can instead earn a $4 billion in the term of the concession period ie till the year 2035. But with GMR running the airport the revenue share for the nation will amount to $1. 4 billion. Against this argument, GMR has projected that Maldives will earn $2.1 billion. To buttress its point, the current government questioned the levy of the ADC as part of the revenue share model and moved to cancel the contract.
The Singapore court on Thursday allowed the government to take over the airport from GMR. The deadline expires Friday night, when the government will take over the airport.
- Five months after gruesome ATM attack, accused still at large
- Ex-syndicate member of Bangalore University held in marks-for-cash scam
- Accused get bail as police fail to file chargesheet
- ‘Naxals collected info on trucks carrying explosives from Khadki to Ahmednagar’
- A tale of two villages: Ramayan and Mahabharat
- UP CM tears into Modi bastion on first visit to Gujarat, says Third Front ready