AP government keeps eye on Satyam as its share value shrinks
A consortium comprising Maytas Infra, Navbharat Ventures and Ital Thai bagged the HMR project contract with a 30-year concession period. Satyam's board members
By PTI |
HYDERABAD: The Andhra Pradesh government is keeping a close eye on the developments in the Satyam group even as fate of the Rs 12,200 crore Hyderabad Metro Rail (HMR) Project apparently hangs in balance with the current turmoil in the group.
The government, however, is seeking to allay apprehensions saying "the project is well on track."
But, anxiety in the government is palpable as derailment of the project at this stage could tarnish the image of the Y S Rajasekhara Reddy administration.
The consortium comprising Maytas Infra, Navbharat Ventures and Ital Thai bagged the HMR project contract with a 30-year concession period.
The consortium entered into an agreement with the Andhra Pradesh government to execute the project on a build-operate-transfer basis and pay a sum of Rs 30,000 crore to the government during the concession period.
However, the project has been mired in controversy since beginning with environment groups opposing it.
Delhi Metro Corporation Managing Director, E Sridharan has questioned the economic model of the HMR project and observed that it was like "selling away the family silver."
Even as such controversies seemed to have died down, the developments in the Satyam group, of which Maytas is a part, have cast a shadow on the HMR project as well.
The government, however, is seeking to allay apprehensions saying "the project is well on track."
But, anxiety in the government is palpable as derailment of the project at this stage could tarnish the image of the Y S Rajasekhara Reddy administration.
The consortium comprising Maytas Infra, Navbharat Ventures and Ital Thai bagged the HMR project contract with a 30-year concession period.
The consortium entered into an agreement with the Andhra Pradesh government to execute the project on a build-operate-transfer basis and pay a sum of Rs 30,000 crore to the government during the concession period.
However, the project has been mired in controversy since beginning with environment groups opposing it.
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Delhi Metro Corporation Managing Director, E Sridharan has questioned the economic model of the HMR project and observed that it was like "selling away the family silver."
Even as such controversies seemed to have died down, the developments in the Satyam group, of which Maytas is a part, have cast a shadow on the HMR project as well.
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