The tussle throws up questions such as, should India support its companies overseas, even though it cannot control private companies' behaviour abroad? At the same time India needs to take into account that the dispute could be politically motivated since Maldives is witnessing anti-India sentiments, after the new government came to power.
The ongoing dispute between the Indian company GMR Infrastructure and the Maldives government over the former's contract to build an airport for the Maldives' capital, Male, throws up some knotty questions.
Most importantly, to what degree should the Indian government step in to protect the interests of its corporate citizens abroad? Some would argue that even if the Maldives have entered into a poor deal, the sanctity of contracts requires it to be kept.
In this case, GMR Infrastructure was authorised by the Maldives' civil aviation authorities to collect $25 (Rs 1,365, at current prices) from international passengers as an airport development fee.
When a court disallowed this payment - reminiscent of a similar scuffle over airport development fees in GMR-managed Delhi [ Images ] Airport - the Maldives government said it would pay GMR an equivalent amount itself.
04/12/12 Business Standard/Rediff.com
