Friday, January 09, 2009 6:09 PM
Maytas are involved in many Infrastructure Projects of Karnataka
After Satyam Computer Services Ltd chairman Ramalinga Raju admitted to a fraud of Rs 7,000 crore by him, the consequences
are likely to hit the infrastructure development sector in Karnataka.
The revelation has made the state government to sit up because Maytas Infra Pvt Ltd -- a company promoted by Satyam -- has been involved in some key infrastructure development projects in the state on a public private partnership (PPP) basis.
Tejraj, son of R Raju, owns Maytas and is involved in projects like building Shimoga and Gulbarga airports, besides being part of a consortium in constructing the elevated expressway connecting Silk Board Junction to Electronic City.
Where the tremors might be felt:
Shimoga and Gulbarga airports
The infrastructure development department (IDD), the nodal agency to execute airport clearances, has signed a project development agreement with the consortium comprising Maytas, Nagarjuna Construction Corporation (NCC) and VIE India Project Development and Holdings to build Shimoga and Gulbarga greenfield airports. Estimated cost of each project is Rs 110 crore.
Maytas is also part of a consortium that is developing an elevated toll expressway connecting Bangalore and Electronics City. This is located at Bangalore-Hosur section on NH 7. The project under the National Highways Authority of India (NHAI) worth Rs 775 crore is handled by a consortium comprising Soma Enterprise Ltd, Nagarjuna Constructions and Maytas Infra.
While government officials maintain that it is premature to make any comment on a re-think of continuing partnership with Maytas, NHAI has said the elevated expressway would not be halted as the financial closure for the project was completed in October 26
Even the Karnataka Power Transmission Corporation Ltd (KPTCL) has arrived at an agreement with Maytas Infra. The company is said to have bagged the project from the KPTCL for construction of seven 110 KV sub-stations along with transmission lines on a turnkey basis in Belgaum, Bagalkot, Bijapur and Hubli. The total value of the project is Rs 67 crore.
Bangalore Metro Rail
Another key area where the company has its hand in Karnataka is the prestigious Bangalore Metro Rail project. Maytas has been awarded the contract for construction of boundary walls, roads, drains and earth filling for the Byappanahalli depot. The project, which is in progress, involves site development for metro car sheds. The contract value is Rs 42 crore.
The entire logistics and manpower training for the Arogya Kavacha -- the emergency medical response service on the toll-free helpline number 108 -- is said to be provided by Satyam's non-profit arm called the Emergency Management Research Institute (EMRI).
On the positives, Brindavan Infrastructure Company Ltd, a `special purpose vehicle' created by Maytas Infra along with Nagarjuna Construction Company and KMC Constructions Ltd, has successfully implemented the four-lane Bangalore-Mysore highway on NH 17 worth Rs 240 crore. The company has also completed building 5.5-km-long Sira by-pass road.
Maytas was also involved in the construction of Bangalore Mysore Infrastructure
Corridor (BMIC) peripheral road project. A consortium -- Karnataka First Consortium -- were formed involving four companies: Maytas Infra, GVK Infra, Nandi Intellectual Properties and Indus Capital Partners. The consortium has submitted a proposal to the government proposing to build nine expressways with a length of 2,496 km