Troubled Maytas gets a lifeline from State govt
Allowed 10 years deferment on airport lease rent
The beleaguered Maytas Infra received a helping hand from the State government in implementing the much-delayed greenfield airports in Shimoga and Gulbarga.
The State Cabinet on Wednesday okayed the Maytas’ request for the deferred payment of lease rent on land to the Government for the initial 10 years.
The company has agreed to pay lumpsum at once on the 11th year and, in turn, it will give bank guarantee to the Government.
The company under the new management of Infrastructure Leasing & Financial Services Ltd. (IL&FS), had placed this request as it was finding it financially difficult to immediately take up the two projects in Karnataka.
As per the project development agreement signed between the then Maytas board and the Government, the former will hand over 662 acre land to the promoter for Shimoga project at Rs 20,232 lease rent per acre annually. For the Gulbarga airport, 567 acre will be given at Rs 15,111 per acre annually.
The total lease rent per annum works out to around Rs 1.3 crore for Shimoga and around Rs 85 lakh for Gulbarga projects. The land has been given for 30 years lease.
When the then Maytas, promoted by former chairman of scam-hit Satyam computers Ramalinga Raju’s family, was in deep financial trouble a few months ago, the State government had issued a show-cause notice to the company as to why the contract with it cannot be cancelled.
Then, the reconstituted board of Maytas assured the Government to immediately take up the projects.
Briefing reporters about the Cabinet decision, Home Minister V S Acharya said the company had requested the Government to allow it to give surety for only five years.
But the Finance Department turned it down and insisted that the surety should be for the entire 10 years. With the company agreeing for this condition, the cabinet has shown the green signal, he added.
Official sources said the Government was reluctant to terminate the contract with the promoter, fearing further delay in implementing the airport projects.
The Cabinet has also decided to provide 370 acre land, power supply and security for initial five years to the Airport Authority of India (AAI) for taking up expansion of Belgaum airport, the Home Minister said.
DH News Service
