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Hyderabad, Jan. 11 The Andhra Pradesh Government has initiated a process to assess Maytas Infra capability to execute nearly Rs 30,000-crore worth projects in the State.

This includes the Rs12,000-crore Maytas-led consortium projects of the Hyderabad metro rail, Machilipatnam port and several irrigation and road projects.

This review follows the disclosures made by Mr B. Ramalinga Raju, ex-chairman of Satyam Computer and promoter of Maytas Infra and Maytas Properties.

The State Chief Secretary, Mr Ramakanth Reddy, has been entrusted the task of analysing the implications of Satyam disclosures and their fallout on these two companies and also Maytas Infra’s ability to close finances for large projects in such circumstances.

Addressing a press conference here on the Satyam probe, the State Chief Minister, Dr Y.S. Rajasekhara Reddy, said that the Chief Secretary will compile a status report on the company’s ability to close finances for major projects.

In any case, he defended the award of contracts to the Maytas consortium.

The award of the metro project was a transparent process handled by independent firms. According to the arrangement, a consortium partner is collectively and severally responsible for the execution of the project, he said.

The Maytas Infra-led consortium holds 52 per cent stake in the Hyderabad metro project wherein Maytas Infra has 26 per cent, Nava Bharat (16 per cent) Ital Thai and IL&FS (5 per cent each) and the rest 48 per cent is to be mobilised.

Dr Reddy said Maytas Infra projects include Hyderabad metro, Machilipatnam port, several road projects and Rs13,000 crore worth projects in the recently announced Chevella-Pranahitha lift irrigation projects.

In the Machilipatnam port, Maytas Infra holds 38 per cent, SREI International (38 per cent), NCC and Sarat (11 per cent each). Of this, Rs 3,000 crore worth projects are now under execution, and efforts are under way to expedite the implementation of the Machilipatnam port, he said.

Referring to the Satyam disclosures, Dr Reddy said that his parleys with the Prime Minister, Dr Manmohan Singh, have resulted in swift action. As per requests, a board of three members headed by Mr Deepak Parekh has been constituted.

For the Government, the main concern is the welfare and future of 53,000 Satyam employees and all stakeholders. All necessary measures will be taken to ensure that the company does not face problems, he said.

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