Maytas Infra says ministry has asked PGCIL to release funds

Hyderabad-based Maytas Infra today said that the Ministry of Corporate Affairs has asked state-run Power Grid Corporation of India (PGCIL) to allow the infrastructure firm continue work on two projects it had bagged earlier and also release the required funds.

However, Maytas is awaiting a response from the Power Grid board, which is expected to take a decision shortly, it said in a statement.     

Maytas had bagged the Jajpur and Midnapore projects in 2008 from PGCIL through a competitive bidding process.     

However, due to recent developments, PGCIL has delayed the release of the advance, which is impacting the work progress, Maytas said.     

Maytas Infra, a company promoted by Satyam founder B Ramalinga Raju, started facing trouble after the proposed merger of Satyam with Maytas.     

The Maytas board had recently requested the MCA to intervene and advise PGCIL for release of funds as per the contract.     

The MCA, after reviewing various steps taken by Maytas, has recommended that PGCIL should allow the company to work and also release the payments, it added.     

Maytas Infrastructure at present has a order book worth Rs 8,000 crore.