GMR to be in action; wins arbitration worth USD 270 million

GMR Male International Airport Limited (GMIAL), a subsidiary of GMR Infrastructure Limited, on October 27 post market hours announced that it has been awarded compensation of approximately US$ 270 million by the 3-member international arbitral tribunal. The compensation covers the debt, equity invested in the project along with a return of 17 per cent and termination payments and legal costs. The compensation is net of taxes that GMIAL may be required to pay in the Maldives. GMIAL had entered a Concession Agreement with Government of Maldives and Maldives Airport Company Limited (MACL) for modernisation and operation of Ibrahim Nadir International Airport in 2010.

The Concession Agreement was wrongfully rejected by the Government of Maldives and Maldives Airport Company Limited on November  29, 2012 alleging that the same was void. After detailed further proceedings, the tribunal has issued its final order whereby it has awarded compensation to GMIAL. The shares of the parent company GMR Infra could see action on October 28.  The shares on October 27 closed at Rs 13.89.