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Anxiety grips Maytas partners

india Updated: Jan 22, 2009 22:39 IST
Samiran Saha

Anxiety has gripped the consortium partners of Maytas Infrastructure, that is sitting on a raft of high-value projects worth about Rs 15,000 crore — ranging from the Hyderabad Metro Rail to the Machlipatnam deepwater port on the country’s eastern coast.

“The consortium leader is responsible for the project getting underway,” said a senior executive of Navabharata Ventures Ltd, a consortium partner of Maytas that is executing the Hyderabad Metro Rail project. “We have a 16 per cent stake in the Rs 12,220 crore Hyderabad Metro Rail project.” The partners have started exploring alternatives amid high uncertainty about the projects’ status.

Maytas Metro Ltd (MML), the special purpose vehicle (SPV) formed by the consortium, was granted the project last September for the 71.16 km valued at Rs 12,220 crore.

It had made a royalty offer of Rs 30,311 crore across the 35-year contract period, raising eyebrows about the commercial viability such high revenues.

Partners of other projects echoed the feeling. “If Maytas cannot execute projects then we will discuss the issue with other consortium partners and see what best could be done,” said a top executive of SREI Infrastructure Finance, which is Maytas’ partner for the Rs 1,590 crore Machlipatnam deepwater port.