Maytas Infra has decided to ask Infrastructure Leasing and Financial Services Ltd (IL&FS) to increase its stake in the Hyderabad Metro Rail Project after a decision to this effect was taken at the Maytas board meeting on Friday. At present, IL&FS has a 5% stake in the Hyderabad metro project.
Maytas Infra government nominated director on the board Anil K Agarwal told FE, ?We are looking forward to the Hyderabad Metro Rail Project and the board is optimistic about the execution of its plans. We have asked IL&FS to increase the stake in the metro project, which at present is 5%. We want them to be participating with us more aggressively and would also like them to assist us in the financial closure.?
Agarwal also said the company is in talks with various financial institutions like ICICI, State Bank of India, IDBI for the corporate debt restructuring of the company.
The board in its last meeting had approved the debt recast plan and made a presentation to the corporate debt restructuring (CDR) forum. The board reviewed the status of the projects of the company along with the Hyderabad metro project.
The company had said in a statement that the CDR scheme is likely to be approved soon and the board was optimistic on the execution of various projects taken up by the company.
After the Satyam fiasco, banks had become watchful of their loans granted to the two Maytas companies and were also considering review of their exposures in the infrastructure company. In January, the Reserve Bank of India had asked the banks to furnish data about their exposure made in Satyam and also the two Maytas companies–Maytas Properties and Maytas Infrastructure.
The major projects of Maytas companies like Hyderabad metro project and flagship project of Maytas Properties, Hill County came to a halt because banks had become cautious in their approach towards the two companies. Ved Jain, another government nominated director on the board of Maytas Infra said the foremost objective of the government directors on the boards of the two companies is to restore the confidence of investors and to make the two companies move on.