Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / Maytas Infra approaches govt for help
BackBack

Maytas Infra approaches govt for help

Maytas Infra approaches govt for help

Premium

New Delhi: Faced with massive cash-crunch, Maytas Infra, a 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.

Power Grid Corporation of India Ltd (PGCIL) had in December last year accorded the company with rural electrification project worth Rs222.25 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, 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.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 27 May 2009, 04:53 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie