Decade after GMR’s ouster, AAI to study Maldives plea to run airport

The recent request from the Maldives government to India's Civil Aviation Ministry, seeking a study by the Airports Authority of India (AAI) for managing the upgraded Hanimaadhoo airport, marks a significant turning point in India-Maldives bilateral relations. This development is particularly noteworthy as it comes a decade after the controversial ouster of the Indian infrastructure giant GMR Group from a major airport project in the island nation, highlighting a complex history of cooperation and contention.

**A Decade of Diplomatic Turbulence: The GMR Episode and its Aftermath**

To truly understand the weight of this current request, one must revisit the past. In 2010, GMR Group secured a lucrative contract to develop and operate the Ibrahim Nasir International Airport (INIA) in Malé for 25 years. This was a flagship project, demonstrating India's growing economic presence in its neighbourhood. However, the project became mired in local political controversies, with allegations of corruption and unfair terms. In 2012, under then-President Mohamed Waheed Hassan Manik's government, the contract was unilaterally terminated, citing issues with the concession agreement. This move sparked a diplomatic row, with India expressing strong disappointment and GMR seeking international arbitration. The incident severely strained India-Maldives ties and created an atmosphere of distrust, with Malé increasingly leaning towards China for infrastructure development and financial aid in subsequent years.

**The Current Overture: A New Chapter?**

The Hanimaadhoo International Airport Development Project in the northern Maldives is a crucial infrastructure initiative, strategically located to boost tourism and connectivity in the region. Importantly, this project is being undertaken with an $800 million Line of Credit from India, demonstrating India's continued commitment to the Maldives' development despite past challenges. The current request from the Maldivian government, led by President Mohamed Muizzu, for Indian companies (specifically AAI) to manage this upgraded airport signals a potential shift from his administration's earlier 'India Out' stance, which had advocated for the withdrawal of Indian military personnel from the Maldives and raised concerns about India's influence.

**Key Players on the Chessboard**

Several key stakeholders are involved in this evolving dynamic. The **Maldives government**, under President Muizzu, is a central player. Their shift from a seemingly anti-India rhetoric during elections to seeking Indian engagement for a vital infrastructure project indicates a pragmatic approach, possibly driven by economic realities and the need for reliable partnerships. **India's Civil Aviation Ministry** and the **Airports Authority of India (AAI)** are the primary Indian entities. AAI, a statutory body established under the Airports Authority of India Act, 1994, is responsible for creating, upgrading, maintaining, and managing civil aviation infrastructure in India. Its expertise in airport management is globally recognized, making it a suitable candidate. Historically, the **GMR Group** represents the cautionary tale of past engagement, while **China** remains an implicit competitor, having significantly expanded its footprint in the Maldives through various infrastructure projects under its Belt and Road Initiative (BRI).

**Why This Matters Immensely for India**

This development holds immense significance for India across multiple dimensions. Geopolitically, the Maldives occupies a critical position in the Indian Ocean Region (IOR), vital for maritime security and trade routes. India's **'Neighbourhood First' policy** prioritizes strong, friendly relations with its immediate neighbours, and securing a role in managing a key Maldivian airport aligns perfectly with this objective. It reinforces India's commitment to regional stability and development. Furthermore, it directly supports India's **'SAGAR' (Security and Growth for All in the Region)** doctrine, which emphasizes enhancing security, economic cooperation, and infrastructure development in the IOR. Economically, such engagement offers opportunities for Indian companies, fosters greater trade and investment, and provides a platform for India's soft power projection through infrastructure diplomacy. From a strategic perspective, it helps counter the growing influence of China in the region, ensuring that India remains a preferred partner for its neighbours. Re-establishing trust and robust cooperation with the Maldives is crucial for India's long-term strategic interests in the Indo-Pacific.

**Policy & Legal Frameworks**

While no direct constitutional articles govern such specific international projects, India's foreign policy is guided by Directive Principles of State Policy, particularly Article 51, which promotes international peace and security, and fosters respect for international law. The Airports Authority of India (AAI) operates under the Airports Authority of India Act, 1994, which grants it the mandate to manage airport operations. Any future agreement for AAI to manage the Hanimaadhoo airport would likely be structured as a bilateral agreement or a commercial contract between AAI (or an Indian company) and the Maldivian government, adhering to international commercial laws and potentially bilateral investment treaties.

**Charting the Future Course**

The decision by the AAI to study the proposal is the first step. If the study is favourable and terms are mutually agreed upon, it could herald a new era of robust bilateral cooperation, potentially paving the way for more Indian investments and projects in the Maldives. This would not only boost Maldivian infrastructure and economy but also solidify India's position as a reliable and preferred development partner. However, India must proceed cautiously, learning from the GMR experience, ensuring transparency, and addressing local sensitivities to build a sustainable long-term partnership. The success of this venture could also serve as a template for India's engagement with other small island developing states in the region, bolstering its strategic outreach and economic diplomacy.