Insurance glitch in Boeing-MADC deal

Nagpur: Even as Boeing is set to invest US $ 100 million in the Nagpur Special Economic Zone (SEZ), the Maharashtra Airport Development Company (MADC) and the aircraft major are now haggling over an insurance clause in the deed to be signed between the two.
The MADC in its lease deed has a clause that the investor has to insure the facility and the compensation received from the insurance company has to be shared between the two. However, Boeing is finding the stipulation unacceptable, due to which the formal signing in the deed has been held up.
The lease-deed was expected to be signed in September before, as it was learnt that the Boeing had agreed to most of the MADC’s conditions. Work on the company’s site was expected to have been started this month. However, the insurance issue has held up the deal.
MADC’s vice-chairman-cum-managing director R C Sinha said a team of Boeing officials will be visiting India in a couple of days or so to discuss the issue.
16/10/07 Shishir Arya/Times of India

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Categories: Airports Oct 2007, Foreign Oct 2007, New Oct 2007