Satyam scam haunts Maytas

Satyam scam haunts Maytas

“We feel pained by the continuous equation of Maytas with Satyam, though they are two different legal entities. The only association is that it is promoted by Raju’s son Teja Raju,” a senior official told PTI.

Teja Raju who is still the Vice-Chairman of the company does not look after the day to day activities. The company is run by the executives. Major decisions of strategic nature has to be cleared by the government-nominated independent directors, the official said.

Healthy order book

The official said the company still has an order book of Rs 8,000 crore. “These projects should be executed in the next three years,” he added.

None of the orders that were cancelled were on the grounds of performance. They went because the company was facing a cash-crunch. However, things have started improving now.

The cash-starved firm got a lifeline when a consortium of 18 banks approved the corporate debt restructuring (CDR) package for the company. As part of this, Maytas will get Rs 100 crore as working capital, besides more time to repay loans. The company would also get Rs 200 crore non fund-based loan which will help it in infusing liquidity, accelerating the pace of execution of projects and bidding for new projects.

He said the company is scanning the market and as and when opportunities arise would bid for new projects.

“We plan to raise about Rs 450 crore in another three years by selling a stake in our existing projects,” he added.

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