Maytas seeks more time for Hyderabad Metro projectJune 18th, 2009 - 8:09 pm ICT by IANS
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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- Andhra Pradesh scraps Metro deal with Maytas (Lead) - Jul 07, 2009
- Maytas seeks more time for Metro Rail financial closure - Mar 17, 2009
- Andhra to call global bids for Hyderabad Metro - Jul 13, 2009
- Rahi venture begins Gulbarga airport project - Aug 11, 2011
- Maytas Infra touches 52-week high on stake sale news - Jun 21, 2010
- L&T bags Hyderabad Metro Rail project - Jul 14, 2010
- Deadline for financial bids for Hyderabad Metro extended again - Jun 06, 2010
- Fresh global bids invited for Hyderabad Metro - Jul 17, 2009
- IL&FS to be new promoters of Maytas Infra (Lead) - Aug 31, 2009
- Work on Hyderabad Metro to begin in January - Jul 15, 2010
- IL&FS to be new promoters of Maytas - Aug 31, 2009
- Andhra Pradesh cancels Metro contract awarded to Maytas - Jul 07, 2009
- Hyderabad Metro Rail to be completed in five years - Feb 19, 2010
- Maytas Infra retains Karnataka airport contracts - Jul 07, 2009
Tags: andhra pradesh government, b ramalinga raju, central government, closure, concession agreement, consortium, financial accounts, financial services limited, financial transactions, infrastructure company, march 17, metro project, metro rail project, partnership contract, prestigious project, public private partnership, rs 8, satyam computer, scandal, state government