Satyam's IT project in Gujarat likely to be abandoned

Scandal-hit Satyam Computer Services is likely to abandon its proposed IT park project in Gandhinagar in view of the multi-crore fraud in the Hyderabad-based software firm, Gujarat government officials said today.

B Ramalinga Raju, Satyam's disgraced Chairman who resigned after admitting to the fraud, had announced to set up IT park in Gandhinagar at an infotech summit in December 2006. Of the proposed Rs 60-crore project, the IT giant had already invested Rs 11 crore in land.

"Following the announcement (by Satyam), the state government had allotted 26 acres adjacent to a TCS project in Gandhinagar," said a senior official in the state IT department.

"A few months back, Satyam had conveyed to the IT department that it wanted to convert the IT park into an SEZ," he said, adding subsequently there was no communication from the company.

However, following the disclosure of the Rs 7,000-crore fraud, the company is in trouble and may not go ahead with the proposed park, the official added.

"So far we have not received any communication from the Satyam management regarding the proposed park. But we are very doubtful about the project taking off, given the mess the company finds itself in," he said.

"It is most likely that the company would abandon the project," said another senior government official.