Twists & turns for Maytas: The Statesman

The decision of the Andhra Pradesh government to cancel the Rs 12000-crore Hyderabad Metro Rail project that it had awarded to Maytas Infrastructure Limited has become curious .

Bangalore, July 08: The decision of the Andhra Pradesh government to cancel the Rs 12000-crore Hyderabad Metro Rail project that it had awarded to Maytas Infrastructure Limited has become curious .
More so, as just yesterday its Karnataka neighbour decided to reaffirm faith in the company by reversing its earlier position to cancel the contracts for two greenfield projects that it had given the company.

These related to the construction of Shimoga and Belgaum airports involving an investment of over 220 crore. Maytas was floated by the family of the controversial founder of Satyam, Mr B Ramalinga Raju.

The decision was taken by the Karnataka Cabinet which, according to Mr V Acharya, Karnataka home minister, received a communication from the centre urging the government to review its earlier stand. Briefing newsmen after the Cabinet meet, he said that the government had received a communication from the Union ministry of corporate affairs asking it to reconsider the decision and to give the projects to the company. The board of Maytas Infra was reconstituted earlier.

Even if the chairman of the newly constituted board, Mr K Ramalingam, had met the state officials expressing confidence in delivering the goods, Karnataka had cancelled its contract with the company earlier following delay in implementation of the two greenfield projects.

Under the circumstances, Andhra Pradesh’s decision is all the more surprising The question that is being raised here is: How come the Centre could influence a BJP-run government to reverse its decision, while failing to do so in Andhra Pradesh, especially, as it has a Congress–led government

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