Satyam urgently needs Rs 150 cr, says Mynampati
Satyam's senior management executive Ram Mynampati has informed the government that the troubled IT firm would need Rs 150 crore to meet insurance liabilities of its US employees. Listen to PodcastSatyam sinksbusiness Updated: Jan 15, 2009 18:49 IST
Satyam's senior management executive Ram Mynampati has informed the government that the troubled IT firm would need Rs 150 crore to meet insurance liabilities of its US employees.
"We have received a mail or two from Mynampati. They indicated that they would need something of the order of Rs 150 crore to take care of the health insurance liabilities of the employees in the US," Economic Affairs Secretary Ashok Chawla told reporters in New Delhi.
Mynampati is in the US to talk to clients and reassure them of the company's ability to continue serving them, besides restoring confidence among employees in the aftermath of a Rs 7,800 crore financial fraud disclosed by founder Ramalinga Raju last week.
Chawla said there is no immediate plan for a government bailout for Satyam, although Commerce and Industry Minister Kamal Nath had indicated that the government was willing to extend financial support to the company.
"Not at this stage," Chawla said when asked if the government would offer any bailout to the IT firm now.
Asked if the new board has already approached the government for Rs 150 crore assistance, he said: "Board members have got down to work, they will be getting in touch with the Ministry of Corporate Affairs."
The company's new board, comprising Deepak Parekh, Kiran Karnik and C Achuthan, had agreed on meeting financial needs as a top priority.
On whether the government would provide any indirect support to Satyam, Chawla said: "It depends on the board coming to kind of conclusion; what is their requirement and the actual accounts indicating what it is".
He said the real picture on the company's "receivables" has to the revealed.