Govt may provide financial support to Satyam

The government's help to the crisis-ridden Satyam Computer Services may include financial support as well, as it is a question of saving jobs and institutional investment, Commerce and Industry Minister Kamal Nath said.

He said the government will consider "all aspects" in helping the troubled IT company "once it receives firm proposals from the newly constituted board". Yesterday, the government constituted a three-member board comprising noted banker Deepak Parekh, IT expert Kiran Karnik and ex-SEBI member C Achuthan. More appointments have been made today.

According to the Company Law Board's order, the reconstituted board of the IT major can have a maximum of 10 members.

The government on Friday sacked the board of Satyam a few days after its founder-chairman B Ramalinga Raju admitted to a Rs 7,800-crore fraud in the books of accounts of the IT company.

When asked whether the government will consider financial help, Nath said, "Of course. There are many jobs at stake and institutional stakes."

He said now it was up to the board to come up with proposals.

The new board met today in Hyderabad and the outcome of the meeting is expected to be announced later in the evening.