India looks to resolve differences as Maldives President Abdullah Yameen comes calling

NEW DELHI: The Manmohan Singh government will seek the creation of a climate conducive to Indian investment in the Maldives when president Abdullah Yameen arrives in Delhi on January 1 on his maiden visit abroad after being elected head of state. This includes the resolution of disputes relating to GMR’s airport project and the allocation of a site for a Tata housing project.

The protection of Indian investments and the country’s security interests in the region will dominate the agenda when Yameenmeets Prime Minister Manmohan Singh, officials said. India will insist on the resolution of both commercial issues, officials said.

GMR sought compensation of $1.4 billion from Maldives last June for the “wrongful termination” of its 25-year contract to develop and operate Male International Airport.

The claim was filed before an arbitration court in Singapore and a final order is by the end of March.

Over $500-million airport project awarded to GMR for modernising and operating the Ibrahim Nasir International Airport in 2010 during Mohamed Nasheed’s tenure was terminated by the Waheed government in November 2012 on the grounds that it was illegal.

The airport was taken over by the Maldives Airports Co after a legal battle in which GMR had initially got a stay order on the termination from the Singapore High Court. However, the Singapore Supreme Court later ruled that the Maldives government had the power to take over the airport.

India is now pinning hopes on President Yameen, half brother of ex-President MA Gayoom, with whom it has a good relationship.