Maytas seeks more time for financial closure for Metro rail

Maytas Infra Ltd (MIL), a company owned by former Satyam Computer Services Chairman B Ramalinga Raju’s siblings, has requested the state government to grant extension of time for achieving financial closure for Metro Rail Project. “The company needs additional time to achieve the milestones mentioned in the Concession Agreement, which includes achievement of financial closure.”

“The global recession and the consequent credit squeeze in national and international capital markets have created a Force Majeure (super force) situation. Besides, the ongoing PIL is having an extremely deleterious effect on our ability to achieve the Financial Closure,” a company’s spokesman said in a release in Hyderabad on Tuesday (March 17).

Justifying the extension of time, the spokesman said that topographic surveys, alignment designs, architectural layouts of stations and preliminary designs for civil works are complete, while GAD for railway crossings have been submitted to railway authorities for their approval.  “Inspection by railway authorities has also been completed. World-class consultants have been appointed for engineering and project management, financial advisory and debt syndications, tax planning and insurance,” the company said.

Traffic management consultant is in the process of being appointed, tender document for rail systems is complete and ready to be issued, tender document for civil works, power supply and depot is under preparation, and the same would be finalised shortly, the spokesman added. “In the light of the above, the company would need extra time to achieve the milestones in the Concession Agreement including achievement of Financial Closure. Maytas Infra requests the government to grant an extension of time for achieving the financial closure, ” it said.

(With inputs from agencies)

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