GMR Airport project: Aid to Maldives likely to go away

NEW DELHI: India's financial aid of $25 million to Maldives could wither away as bilateral ties have been strained following Male’s decision to scrap GMR’s $500 million project. No formal decision may be needed to stop the aid as the Maldivian government will be in no position to seek aid after unilaterally cancelling the GMR project over which India has expressed displeasure.

“During his telephonic conversation with foreign minister Salman Khurshid, Maldivian foreign minister Abdul Samad Abdullah said he was not aware of India’s displeasure over the issue,” an official source said in Delhi.

Sources said India had conveyed its displeasure to Maldives “immediately” after the GMR deal was scrapped on November 27 and it had been communicated to Maldives government that the Indian interest should be “fully protected”.

“The decision to terminate the contract with GMR without due consultation with the company or efforts at arbitration provided for under the agreement sends a very negative signal to foreign investors and the international community,” the spokesman of the external affairs ministry had said on November 27 after getting news of Maldives cabinet decision to scrap the GMR deal.

There have been reports that there could be a move to hand over the airport project, handled by GMR, to a Chinese company as the Chinese are keen on competing with India with projects in the islands.