Andhra Govt cancels Metro contract awarded to Maytas | business | Hindustan Times
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Andhra Govt cancels Metro contract awarded to Maytas

business Updated: Jul 07, 2009 15:28 IST

IANS
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The Andhra Pradesh government on Tuesday said it has cancelled the Hyderabad Metro rail project contract awarded to Maytas Infra, run by the family of former Satyam chairman of B Ramalinga Raju.

Urban Development Minister Anam Ramnarayana Reddy said the state government decided to cancel the project as the company failed to achieve financial closure by the March deadline.

Maytas bagged the Rs 12,000-crore project by offering to give about Rs 30,000 crore to the government over 30 years.

Company chairman K Ramalingam had met Chief Minister YS Rajasekhara Reddy recently but could not guarantee financial closure or performance.

Reddy said the Rs 71 crore that Maytas had paid would not be returned, and that a detailed plan for the project would be announced July 13.