Maytas likely to lose Karnataka airport projects

Bangalore: Maytas Infra, headed by fraud-hit Satyam’s former chief Ramalinga Raju’s son Teja Raju, is on the way out from Karnataka’s two ambitious infrastructure projects of building airports in chief minister BS Yeddyurappa’s home district of Shimoga and Gulbarga.
The company, which had emerged as the successful bidders, as part of a consortia with Nagarjuna Construction Company (NCC) and Vienna International Airport’s arm VIE India Project Development and Holding LLC for building the two airports would be issued notices on terminating the contracts, as it had not shown any interest in implementation.
Briefing reporters on the decisions taken at the state cabinet meeting, primary and secondary education minister Vishweshwar Hegde Kageri said that the government would take appropriate decisions on retendering after completion of the formalities in cancelling the Maytas tender.
Maytas Infra and NCC were to hold 37% each, with VIE holding 26%, in the two airport ventures. Both the projects envisaged an initial investment of Rs 50 crore each and were to be set up in 650 acres of land. However, the state cabinet has approved construction of an approach road to the Shimoga airport project at a cost of Rs 18 crore, with Rs 5.40 crore to be released immediately.
19/02/09 Economic Times

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Categories: Airports Feb 2009, Merchant Airports Feb 2009, New Feb 2009