Government rules out bailout package for Satyam

January 15th, 2009 - 4:56 pm ICT by ANI  

Manmohan Singh

New Delhi, Jan 15 (ANI): The Government on Thursday ruled out any bailout package for troubled IT company Satyam Computer Services Ltd, but assured to do everything within the framework of its responsibilities to save of the companys employees.

Minister of State for Industry Ashwini Kumar told the reporters here on the sidelines of a Petro-Tech 2009 Conference that the Government is not in favour of a bailout package for Satyam as such, and added that the new board of directors are the ones entitled to take such decisions.

His statement contrasted with Union and Commerce Industry Minister Kamal Naths assurance on January 13 to get a revival package for the injured company to keep it afloat amidst severe financial crisis.

Earlier, there was speculation that the government is considering a package upto Rs 2,000 crore to bail out Satyam Computers.

But, Prime Minister Manmohan Singh in a review meeting with SEBI Chairman C.B. Bhave and other senior government officials created fresh media speculation about the government considering financial assistance.

Kamal Nath, who was present at the review meeting, said the Government is open to considering a financial package for Satyam.

Earlier, the government had ordered the Serious Fraud Investigation Office (SFIO) to probe the Satyam scandal. The SIFO will submit its report in three months.

The probe has been ordered after receiving a report from the Registrar of Companies (RoC) in Hyderabad, which inspected the books of accounts of Satyam Computer Services and eight other companies belonging to the kin of the former chairman B Ramalinga Raju. (ANI)

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