Bangalore-based GMR Group could face hurdles in expansion of the Male airport in Maldives.
A local political party has threatened to file a case in a civil court in the country against GMR's proposal to levy $25 as airport development from January.
The group, which runs Delhi and Hyderabad airports, won the bid to maintain and modernise the Male airport last May. The group also runs the Istanbul airport.
In the second quarter of 2011-12, the group's airport sector recorded 71 per cent growth in revenue and 90 per cent rise in operating profit. However, the sector made a loss of Rs 42 crore because of non-finalisation of tariff for the Delhi airport.
According to a report in Haveeru Online, a Maldives publication, the Dhivehi Qaumee Party will file a case to prevent GMR from collecting airport development fee and $2 as insurance charge from passengers. The party has alleged that GMR failed to develop the airport according to the agreement with the government and the levy violates a local law.
GMR is developing the airport in partnership with Malaysian Airport Holdings Berhad. The total cost of modernisation and expansion of the project is estimated at $511 million (Rs 2,657 crore) and is being funded with a combination of debt and equity. The debt component of $358 million (Rs 1,861 crore) has been tied up with Axis Bank Ltd, the GMR group had said last year.
A company spokesperson said the airport development charge had been approved by the government and will be implemented in due course of time. He said the group had no official intimation about the case.
