Unhappy at being dragged into Maldives’ internal political dispute, India wants it to take legal recourse to sort out the GMR issue or face action, which could include a freeze in bilateral military cooperation or annual aid. Official sources also didn’t rule out a foreign hand in Maldives’ shock decision to cancel the $511 million ( Rs. 2,800 crore) contract — its largest FDI project — with GMR to build and run the Male airport.
They said India would escalate diplomatic action if Male did not seek the Supreme Court’s advice on whether the airport development fee levied by GMR needed the approval of the majlis (parliament), as directed by a lower court.
The tough stand comes as India prepares to post its first defence attaché in Male.
"There could be serious deterioration in political ties between the two countries as the airport issue has been turned into a major issue by Maldivian parties to settle local scores, and India has been unnecessarily dragged into it," said a senior official.
The situation, the official explained, was complex because radical parties with links to Saudi Arabia and Pakistan were also involved in GMR's ouster, and even joint venture partner Malaysia wanted to go solo.
Officials said President Mohammed Waheed has been using the airport issue to whip up sentiments against India with the help of radical parties like Adhaalath. "The airport issue is not a commercial dispute, it is about politics," the official said.
The sources identified Hassan Saeed, advisor to Waheed, as the force behind GMR's eviction. The Indian government is also worried that other countries like China may take advantage of the temporary abrasion in ties. Chinese tourist arrivals in Male have shot up over the past two years, and Beijing wants to establish full-fledged diplomatic ties with Maldives.
"While the Waheed government could refer the fee ratification issue from the majlis to its apex court, it could, in the meantime, exempt Maldivians from the airport fee and only levy it on foreigners, so that income from the airport fills the virtually empty coffers of the island nation," the official said.
Senior UN official wraps up Maldives visit with call for dialogue and credible elections
THURSDAY, DECEMBER 6TH, 2012
A senior United Nations official yesterday stressed the need to promote dialogue and ensure free and fair elections in the Maldives, as he wrapped up a three-day visit to assess potential UN support for next year’s presidential polls.
“I have emphasized to my interlocutors the need for the Maldives to resume political dialogue at all levels, promote messages of moderation and respect, and implement without delay institutional reforms,” Assistant Secretary-General for Political Affairs Oscar Fernandez-Taranco said at a press conference in the capital, Malé.
GMR issue should not impact ties- Foreign Minister
THURSDAY, DECEMBER 6TH, 2012
Foreign Minister Dr. Abdusamad Abdullah has called India not to let the issue of Maldives terminating GMR airport project to affect the bilateral ties between the two countries.
Foreign Minister called the Indian External Affairs Minister Salman Khurshid recently to explain the position of the government regarding the GMR issue. He informed his Indian counterparts that the whole matter is a commercial issue and not an issue related to foreign policy. He expressed hopes that it will not affect bilateral ties with India
As per reports in Indian media, Minister AbduSamad told Khurshid that a detailed communication on it will be sent to Prime Minister Dr Manmohan Singh soon. In a telephone call to Khurshid, Foreign Minister said he was not aware of India’s displeasure over the issue, sources said.
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