GMR insists on $1.4 billion compensation for termination of INIA contract

Indian infrastructure giant GMR has said that it will not change its compensation claim of $1.4 billion from the Maldivian government over the premature termination of a contract to develop and operate the Maldives’ primary gateway, Ibrahim Nasir International Airport (INIA).

"The forceful takeover of the airport by Maldives government amounts to repudiation of a valid contract and therefore damages, including loss of future profit has to paid. Thus, GMR's claim is $1.4 billion," read a statement by GMR on Friday.

GMR's statement follows remarks by President Yameen Abdul Gayyoom that Maldives will try to reduce the compensation amount to GMR.

“The government would have to pay the compensation sought by GMR. We are working towards reducing the compensation amount,” said President Yameen while speaking to reporters on Thursday, prior his departure to Singapore for the Maldives Investment Forum.

The Bangalore-based company's contract was annulled by the then Maldivian government headed by former President Dr Mohammed Waheed Hassan Manik, whose government alleged irregularities in the bidding process which GMR had won.

President Abdulla Yameen Abdul Gayoom has earlier said that the compensation sought by GMR is too high and that the government will hold further discussions with GMR after the arbitration process, if necessary.