Uncertain future stares Maytas Infra projects
Several key infrastructure projects worth over Rs 16,000 crore face an uncertain future as investigators scan the finances of Maytas Infra. Samiran Saha and Mahua Venkatesh report.business Updated: Jan 20, 2009 22:01 IST
Several key infrastructure projects worth over Rs 16,000 crore face an uncertain future as investigators scan the finances of Maytas Infra.
The projects, spread across Andhra Pradesh, Karnataka and Maharashtra, were awarded to Maytas Infra-led consortium and most of these are yet to achieve financial closure. A multi-agency probe is now closing in on all the companies, including Maytas Infra promoted by disgraced founder-chairman B Ramalinga Raju of embattled technology firm Satyam Computers.
According to officials of the Andhra Pradesh government, financial closure for all or many of these projects, including the Rs 13,000-crore Hyderabad Metrol rail project, was to be completed by March, a timeline that seems now unlikely to be met.
According to officials who dealt closely with the infrastructure projects that were awarded to Maytas Infra (which are now under the government scanner), Raju and Co managed these projects mainly because they had “huge comfort levels” with the party in power. Official said a re-bidding of the projects was not an easy option.
“It is not so simple. There are legal and technical issues involved. We cannot call for fresh bids at random. The interest of other consortium partners have to be borne in mind,” a senior state government official told Hindustan Times.
Raising debt for these projects might not also be easy to come by. Public sector banks, including State Bank of India (SBI) with a total exposure of about Rs 3,400 crore, are concerned, a senior government official said.
“We are keeping a close watch on the developments and we will take a call accordingly,” the official told HT.