Maytas seeks more time for Hyderabad Metro project

June 18th, 2009 - 8:09 pm ICT by IANS  

Ramalinga Raju Hyderabad, June 18 (IANS) Maytas Infra has requested the Andhra Pradesh government for an extension of time for the Rs.8,132-crore Hyderabad Metro Rail project, the company said Thursday.
The city-based infrastructure company’s statement comes amid reports that the state government has decided to scrap the agreement it signed with a Maytas-led consortium last year in view of its “incapability” to achieve financial closure.

Financial closure is the process of completing all project-related financial transactions, finalizing and closing the project financial accounts, disposing of project assets and releasing the work site.

However, the company, owned by the family of disgraced founder of Satyam Computer B. Ramalinga Raju, has denied such reports and said it was taking all steps for the financial closure of the project.

“In view of certain reports in the media on Hyderabad Metro Rail Project today (Thursday), Maytas Infra would like to state that it has requested the state government for extension of time. The state government has not taken a decision yet on this matter,” the company said.

“Maytas Infra is committed to completing this prestigious project and all steps towards its financial closure are being taken,” it added.

Earlier reports said the state government had decided to scrap the deal it signed with Maytas and to seek assistance from the central government to execute the prestigious project.

Uncertainty is hanging over the project ever since the Satyam scandal broke out in January this year. Maytas also failed to achieve the financial closure by March 17 as per the concession agreement. The company sought more time to achieve this.

Maytas and its partners Navbharat Ventures, Ital Thai and Infrastructure Leasing & Financial Services Limited (IL&FS) bagged the public-private partnership contract in a global bid.

The consortium holds 52 percent and the state government 16 percent equity in the project. Within the consortium, Maytas holds 26 percent, Navabharat 16 percent, Ital Thai (Thailand) 5 percent and IL&FS 5 percent.

Maytas came under cloud after Ramalinga Raju in January this year admitted to Rs.78-billion (Rs.7,800-crore) fraud in Satyam. There are allegations that he diverted the money to Maytas owned by his son B. Teja Raju. But Maytas has denied it.

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