Maytas Infra approaches govt for help

Press Trust of India May 27, 2009,


Faced with massive cash-crunch, Maytas Infra, the company promoted by kin of Satyam founder B Ramalinga Raju, has asked the government not to hastily withdraw projects awarded to it.

According to sources, Maytas Infra has written to the Corporate Affairs Ministry requesting for support from government agencies that have alloted various projects to it.

When contacted, Maytas Infra Chairman K Ramalingam confirmed the development and said, "After Satyam, many clients, including the government departments, who awarded projects to us have become panicky. We have asked the MCA to coordinate with government departments and support us."

He said the company is commercially viable and with a little support, it can manage through choppy water.

Ramalingam added that the company has written to various government departments, who had awarded projects to the firm, and asked them not to panic due to the multi-crore scam at Satyam Computer.

Many government projects related to irrigation, oil, power, building, etc in states like Andhra Pradesh, Maharashtra, Jammu and Kashmir have been awarded to the Hyderabad-based company.

After Satyam Computer founder B Ramalinga Raju confessed of committing accounting fraud at the IT firm in January this year, many companies including PSUs cancelled contracts awarded to Maytas Infra.

PGCIL had in December last year accorded the company with rural electrification project worth Rs 222.25 crore under which the company was to execute the order in Khurda and Sundergarh districts of Orissa, and West Midnapore district of West Bengal.

However, after the Satyam debacle, Power Grid Corporation of India Ltd (PGCIL) decided to revoke the seven rural electrification contracts.

Similarly, the Karnataka government had also said it will cancel two airport projects being executed by Maytas Infra with Nagarjuna Construction Co Ltd.

London-listed Vedanta Resources Plc had also cancelled a contract with Maytas Infra for building a township for its staff in Jharsuguda, Orissa.

Ramalingam said the company has already finalised its revival plan and has approved corporate debt restructuring package too.