Maytas may lose Hyd Metro project
The financial closure of the Hyderabad Metro Project is set to get delayed as a result of the quagmire that its developer Maytas Infrastructure has landed itself into.india Updated: Jan 15, 2009 20:11 IST
The financial closure of the Hyderabad Metro Project is set to get delayed as a result of the quagmire that its developer Maytas Infrastructure has landed itself into. All indications point out that Maytas would end up losing the project.
"A review process under the Metro chairman is on and a final decision will be taken in a week's time," said C L N Gandhi, Additional Transport Commissioner, Andhra Pradesh.
Another state government official told Hindustan Times that it is unlikely that Maytas would be able to meet the stpulations required to financially close the project in March. To financially close the project Maytas has to pay a performance guarantee of Rs 180 crore, besides show an equity component of Rs 4000 crore and debt of Rs 8000 cr raised from financial institutions.
"We are studying their balance sheets and understand that their position is under strain," the official said on condition of anonymity. "We are also trying to gauge their position in the market and are in touch with financial institutions and banks. In the event of the stipulations not being met, obviously the project would be annulled."