Maytas may lose airport projects

Belgaum: The State government will in all likelihood sever its ties with Maytas of the Satyam group of companies with respect two airport projects.
In the wake of Rs 7,000 crore fraud surfacing in Satyam computers, the government is seriously considering re-tendering the Shimoga and Gulbarga greenfield airport projects. The government has already signed a project development agreement with the Maytas led consortium, comprising Nagarjuna Construction Corporation (NCC) and VIE India Project Development & Holdings as the other partners to implement the airport projects. It was proposed to be take up on public private partnership model, wherein Maytas led consortium was to bear the entire cost except land. Each of the airports is estimated to cost Rs 120 crore.
“We are now considering re-tendering of these two projects. A final decision in this regard will be taken at a meeting convened by the chief secretary on Jan 29 in Bangalore. The CS will review all the projects entrusted to the company in the State, including the airports,” a top government official said.
“Chief Minister Yeddyurappa is concerned about the delay in implementing the projects. He does not want the Opposition to cash in on this issue, especially when one of the two airports is planned in his home district, Shimoga,” the official said.
The government has, in fact, turned down Maytas’ recent request to extend financial assistance to immediately take up the projects. “The company has been finding it difficult to raise money in the aftermath of Satyam scam. Financial institutions are reluctant to lend money to the company,” official sources pointed out.
Maytas Infra Private Limited is headed by Tej Raju, son of former chairman of Satyam computers Ramalinga Raju.
19/01/09 P M Raghunandan/Deccan Herald

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Categories: Airports Jan 2009, Merchant Airports Jan 2009, New Jan 2009