Rapid Fire
India–Maldives Infrastructure Cooperation
- 01 Jan 2026
- 2 min read
The Ministry of Civil Aviation asked the Airports Authority of India (AAI) to examine the Maldives’ proposal to engage Indian companies for the management of Hanimaadhoo airport.
- Context: This move follows the 2012 cancellation of the USD 511 million GMR airport contract and the 2014 award of construction work to Beijing Urban Construction Group (China).
- The issue was subsequently resolved in 2016, when the Singapore Arbitration Centre awarded USD 270 million in compensation to GMR for wrongful termination.
- Hanimaadhoo International Airport: It is located on the island of Hanimaadhoo in Haa Dhaalu Atoll. India extended a USD 800 million Line of Credit (LoC) via EXIM Bank of India for the redevelopment of Hanimaadhoo airport.
- The Maldives is a chain of low-lying coral islands and atolls located in the north-central Indian Ocean, south-west of India and Sri Lanka, extending across the equatorial region.
- Strategic Significance: This development signals renewed bilateral engagement and strengthens India’s role in connectivity, development assistance and strategic influence across the Indian Ocean Region (IOR).
- Airports Authority of India (AAI): It is a statutory body under the Ministry of Civil Aviation constituted under the Airports Authority of India Act, 1994, and operational since 1 April 1995 following the merger of the National Airports Authority and the International Airports Authority of India.
- It develops, maintains, and manages India’s civil aviation infrastructure, including airport operations and passenger and cargo terminals.
| Read more: India and Maldives |
