Male govt rejects Singapore court order on GMR

Dec 04 2012, 02:17 IST
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SummaryNothwithstanding a Singapore High Court order on Monday staying the termination of GMRs airport contract, the Maldivian government said it would wrest control of the airport later this week.

but retracted from the commitment after March 31 and asked it to refund the adjusted payments.

According to Maldives, the terms of the agreement agreed upon by the previous government would have made it pay GMR rather than earn revenues from it. It has been suggested that the Maldivian government would have had to shell out around Rs 2,800 crore over 25 years as per this agreement.

The airport project means a lot for the GMR group financially because it is profitable. Since Male is the gateway to Maldives, a major tourist destination, it would provide for a healthy revenue stream. As reported by FE earlier, the GMR group stands to lose around 20% of revenues coming from its airport operation business.

During the July-September quarter, GMR's total revenues from the airport segment stood at Rs 1,469 crore, of which around Rs 300 crore came from the Male airport operations. This was 35% growth over the revenues booked during the same period last fiscal. The period also saw strong operational performance with a 10% year-on-year growth in traffic to 0.7 million passengers. Ebitda grew year-on-year to Rs 71 crore and net profit at Rs 57 crore was up 193%.

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