AP not to boot out Maytas from metro, port projects

The Andhra Pradesh government is ?alert? and is closely watching the developments at Maytas Infra. It will take a call on the projects awarded to them, especially the Rs 12,135- crore Hyderabad Metro Rail Project and the Rs 1,590-crore Machilipatnam port project, if the company is unable to achieve financial closure and decides to drop out on its own, said AP finance minister, K Rosaiah.

Addressing mediapersons here on Sunday, he said, ?the government has not decided to boot out Maytas from the projects, as is being reported in a section of the media. There is no truth in these reports. We will not take any hasty decision. The government will ?wait and watch?. All the officials are closely monitoring the developments. Decision will be taken only if they move out on their own and when they are not able to achieve financial closure for the projects.?

In case of suo motu cancellation of the works entrusted to JV in which Maytas is a partner, the government cannot forfeit the EMD (earnest money deposit) and bank guarantees as the cancellation will be at the behest of the government. Besides, the JV partner can also go for litigation.

Retendering of the work can also prove costlier, he added. He said, as per the agreements, Maytas and the other JV partners are jointly and independently responsible for the execution of the projects. And if Maytas backs out, then the other partners to the JV should come forward to implement the works, he added.

Rosaiah also dismissed the allegations made by the opposition party that the government is favouring Maytas. He said, ?25 works were given to Maytas Infra and its JV partners during our regime. The total value of projects in Jalayagnam is about Rs 79,418.8 crore and the share of Maytas Infra is to the tune of Rs 5,439.11 crore, which works out to only 6.8%.

However, in the earlier Telugu Desam party regime, between 1999-2004 works awarded to Maytas was to the tune of Rs 278.47 crore. This works out to 12.2% of the total contract value of irrigation projects of Rs 2,285.32 crore during that time?.