Maytas: AP fires, Karnataka hires

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Matyas Infra
Hyderabad, Jul 7: The Centre has decided to cancel Hyderabad Metro rail project contract as Maytas Infra failed to achieve financial closure by March.

Urban development minsiter Anam Ramanarayana Reddy said, "The state government decided to cancel the project as the company failed to achieve financial closure by the March deadline."

Earlier, Maytas had bagged the Rs12,000-crore project by offering to give about Rs 30,000 crore to the government over 30 years.

Chief minister, Y.S.Rajasekhar Reddy said, "The Rs 71 crore that Maytas had paid would not be returned, and that a detailed plan for the project would be announced on Jul 13."

Although the Andhra Pradesh government has cancelled its Hyderabad metro rail project, Karnataka government has reposed faith in Maytas and handed over the construction of two greenfield airports to Maytas Infra Ltd.

Home minister V S Acharya on Monday, Jul 6 said, "Union ministry of corporate affairs had written a letter on Jun 25, 2009, asking the state to reconsider its decision and hand over the construction of Gulbarga and Shimoga airports to Maytas."

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