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Navayuga replaces Maytas Infra

Bs Reporter  |  Chennai/ Hyderabad 

In a setback to Maytas Infra, the company once promoted by the family of Limited founder B Ramalinga Raju, the Andhra Pradesh Cabinet on Wednesday decided to replace it with Navayuga Engineering as lead promoter of the 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 press release.

Maytas was awarded the project in April 2008. A special purpose vehicle (SPV) was 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 was facing serious financial crunch and the two other consortium members opted to exit from the project.

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 4,000 crore in the second phase.

Life tax on cars
The Cabinet also decided to increase the life tax on cars to 12 per cent from the earlier 9 per cent. The tax has been enhanced to 14 per cent from the earlier 12 per cent on cars costing more than Rs 10 lakh and company-owned. There would also be an additional two per cent tax on those going for a second car.

First Published: Thu, April 08 2010. 00:11 IST
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