GMR Infrastructure shares fall following agreement cancellation

Shares of GMR Infrastructure have fallen following the cancellation of the agreement between GMR-MAHB Consortium, Maldives Airports Company Ltd (MACL), and the government of Maldives, to lease Male’ International Airport to GMR.

Reuters India reported that the shares fell by 4.5 percent.

The Maldivian government terminated the agreement with GMR and gave notice to hand over the airport within one week.

The government has said that the agreement was void ab initio.

The Indian government has said that this is a ‘very bad signal’ by the Maldivian government to foreign investors and the international community.

It said that it will take all necessary measures to ensure the safety and security of its interests and its nationals in the Maldives.

However President Dr Mohamed Waheed said in an interview with Press Trust of India (PTI) that the cancellation of the agreement will not affect the bilateral relations between India and Maldives.

"We remain confident that India-Maldives relations will not be affected by the cancellation of the GMR contract by MACL,” the President told PTI.