Navayuga replaces Maytas as developer of port

In a setback to Maytas Infra, the company promoted by the family of Satyam Computer Services Ltd founder B Ramalinga Raju, the Andhra Pradesh Cabinet has decided to replace it with Navayuga Engineering as lead promoter of the Machilipatnam Port project.

The decision would speed up the port project apart from bringing in an investment of Rs 1,590 crore by the new developer for the Bandar port, a long-pending demand in Krishna district, according to an official release.

Maytas was awarded the project in April 2008.

A special purpose vehicle (SPV) was also formed with Maytas as lead partner and SREI Infrastructure and Sarat Chandra Company as consortium members to execute the project.

However, work did not take off after the infrastructure company failed to achieve financial closure due to internal and external factors.

The SPV made a representation that Navayuga Engineering be inducted as the lead promoter as Maytas faced a serious financial crunch and the two other consortium members opted to exit from the project.

Maytas Infra suffered collateral damage after Raju confessed to financial irregularities at Satyam. Subsequently, IL&FS replaced the Raju family as promoters of the company.

The Cabinet considered Navayuga for the project in view of its expertise in developing the greenfield Krishnapatnam Port in Nellore district in 18 months. The company has invested Rs 3,000 crore in the first phase and proposed to invest another Rs 4,000 crore in the second phase.