Maytas Infra Ltd has lost contracts from state-run Power Grid Corp of India and parted ways with joint venture partner KVK Energy and Infrastructure, newspapers reported on Tuesday.
Maytas is founded by the family of Ramalinga Raju, former chairman of fraud-hit Satyam Computer Services.
Power Grid has decided to revoke seven rural electrification contracts awarded to Maytas Infra, the Mint newspaper reported on Tuesday.The projects with a combined value of 3.95 billion rupees, were awarded to Maytas Infra in Orissa and West Bengal.
"Orissa and West Bengal have asked us to revoke the contracts given to Maytas," Mint quoted an unnamed Power Grid official.
Hyderabad-based KVK Energy & Infrastructure has parted ways with Maytas in setting up a 1,050 megawatt thermal power plant in Orissa under the banner of KVK Nilachal Power Pvt Ltd, the Business Standard paper reported.
KVK Energy and Maytas each held 25.5 per cent stake in the project. KVK has decided to acquire Maytas' stake in the 50-billion rupee project, raising its holding to 51 per cent, the paper said.
A Maytas spokesman was not immediately available to comment on the reports.