Metro: Maytas files for time
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17/03/2009
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Deccan Chronicle (Hyderabad)
March 17: Maytas Infra on Tuesday formally requested the state government to extend the deadline to achieve financial closure for the Rs 12,000-crore Hyderabad Metro Rail project.
It is learnt that Maytas Infra wants three to six months more but sources close to the Chief Minister, Dr Y.S. Rajasekhar Reddy, said he had directed the officials to go by the deadlines stipulated in the agreement.
In a statement, the company, an associate of the scam-ridden Satyam Computers, said that the global recession and the consequent credit squeeze have made raising funds difficult. It also blamed the delay on a public interest litigation filed against the Metro project.
Maytas Infra had bagged the project as part of a consortium on September 19 last year.
The consortium had turned down government's offer for viability funding and offered to pay Rs 11 crore at the time of signing of agreement and Rs 50 crore on the date of financial closure.
It also promised to pay Rs 200 crore in fourth year, Rs 100 crore annually from the seventh to the ninth year and Rs 1,750 crore a year from the 18th to the 34th year.