L&T to push ahead with Hyderabad water project
Larsen & Toubro, the country's largest infrastructure company, would move ahead with the Rs 810 crore Hyderabad Drinking Water Project, where it is collaborating with Kirloskar Brothers and Maytas Infra.business Updated: Jan 12, 2009 22:31 IST
Larsen & Toubro, the country's largest infrastructure company, would move ahead with the Rs 810 crore Hyderabad Drinking Water Project, where it is collaborating with Kirloskar Brothers (KBL) and Maytas Infra, one of the two infrastructure and construction companies owned by the sons of Satyam chairman Ramalinga Raju.
However, the company would reserve a decision on what to do with the shares of Satyam, where it has picked up close to 4 per cent leading to this week. Chairman AM Naik has said despite earlier plans of collaborating, L&T will now wait for the legal situation to clear before making any decision.
L&T has no holding in any of the other companies of the Satyam promoter family including Maytas Infra and Maytas Properties, which owns the company's real estate business, a company spokesperson clarified.
L&T and KBL hold 72 per cent (Rs 582 crore) and 7 per cent (Rs 58 crore), respectively, in the Hyderabad project, which is expected to be completed in two years. Maytas Infra holds a 20 per cent stake (Rs 170 crore) in the project, which was to be jointly executed by the consortium.
L&T, Maytas and Kirloskar came together for a consortium that is building the Rs 802 crore Hyderabad Drinking Water Project, awarded in late 2008. "Typically, in a project like this, if one contractor is unable to function, the other two will go ahead with the project. But for us it is probably a construction contract, which we are capable of finishing," said the company spokesperson.
He however, did not provide details as to what could be the fresh financial terms of the project if it is to be completed by the two.
Satyam chairman Raju is in judicial custody after admitting to financial irregularity in the company amounting to Rs 7,000 crore.