Domino effect: Maytas Infra may lose Hyderabad metro project

The ill effects of the Satyam chaos are going to be reflected in lot of avenues. Now Maytas Infrastructure, promoted by the disgraced chairman of Satyam Computer Ramalinga Raju and his sons, may lose the prestigious Hyderabad metro rail project following disclosure of a massive financial fraud by the promoter.

The Andhra Pradesh government will review its decision to award the Rs 12,312 project to the Maytas-led consortium, a senior government official associated with the metro rail on Wednesday said. “The government will now review its decision on awarding the metro rail project to Maytas Infra-led consortium,” the official said.

The state government has earlier repeatedly denied that the lead consortium partner was facing shortage of working capital to implement the project.

Andhra Pradesh chief minister YS Rajasekhara Reddy had also given a clean chit to Maytas earlier this month despite doubts on the operational viability of the project. “Satyam is Satyam and Maytas is Maytas and the latter will execute the rail and other projects,” he had said.

It is now understood that the chief minister has asked for various projects undertaken by the company to be surveyed. Maytas Infra had in September last year floated Maytas Metro (MML) to execute the project. The construction company holds 26% share in Hyderabad Metro Rail (HMRL), while Navabharat Ventures has 16% stake. IL&FS and Ital Thai hold 5% stake each. The stake of the state government is 11% and the balance 37% is with the consortium itself.

According to market experts and realtors, politicians may also withdraw their support to Maytas Infra. With elections approaching, political parties would not like to associate themselves with a company which is linked to the now-tainted Satyam Computer.


Source : www.economictimes.indiatimes.com