Andhra CM orders review of projects under Maytas

Andhra Pradesh Chief Minister Y S Rajasekhara Reddy on Friday directed the state chief secretary to evaluate the projects under execution by Maytas, promoted by Satyam founder B Ramalinga Raju and his family.

Besides the Rs 12,000-crore Hyderabad Metro Rail project, the Maytas-led consortium has bagged projects such as the Godavari drinking water supply scheme for Hyderabad, Rs 1,500-crore Machilipatnam deep water port and various irrigation projects worth over Rs 1,500 crore under the Jalayagnam programme. The government is particularly worried about the metro rail project, Machilipatnam port and the Godavari water supply projects. However, it is learnt that there is a little scope for the government to cancel the metro rail project till the company achieves financial closure.The Maytas-led consortium is to obtain financial closure for the Hyderabad Metro rail project by March. Same is the case with the Machilipatnam port project. Officials of the municipal administration and urban development departments have already reviewed various other projects by the Maytas group.

E A S Sarma, the former Union economic affairs secretary, who had written to the Andhra Pradesh government to cancel all land allotments and projects awarded to Satyam and Maytas Infrastructure, said that the Chief Minister had assured him that an investigation will be conducted.

Sarma, who resigned from the government after being transferred from the finance ministry, said that during the last four years, the state government has given large chunks of land extending up to 1,200 acres in each case at a very low rates. In Visakhapatnam alone, around 50 acres, valued at around Rs 300 crore, was given to Satyam for about Rs 1 crore.

“Just recently, in the first week of December I pointed out the illegalities, irregularities and improprieties in the deal. I issued a notice to the State government saying that I would go to the court; there has been no reply on this. We might approach the court for judicial intervention, so the number of such deals is enormous,” he said.