Daijiworld Media Network - Bangalore (SP)

Bangalore, Jul 8: Undeterred by the decision of the Andhra Pradesh government to withdraw the airport construction projects from Maytas Infra Ltd, the state government, which had earlier said that it would shift the contracts from Maytas, decided to entrust the works again to the same company. This decision to vest the contract relating to Shimoga and Gulbarga greenfield airports, was taken at the state cabinet meeting held here on Monday July 6.

Giving details of the cabinet decisions, home minister Dr V S Acharya explained that the earlier decision was reversed and decision to revive the old agreement was taken, based on the assurance given by the union government. The transactions of Maytas, a sister concern of Satyam Computers, were looked upon with suspicion, after it was revealed that Satyam profits and bank balances were illegally inflated and funds were pumped into Maytas, a company run by the same family that ran Satyam.

After the scam in the Satyam Computers came into the open, the government had developed cold feet about Maytas. But, the central ministry of company affairs has, through a letter, assured the state about the bankability of Maytas. Under the union government, a committee has been formed to closely monitor the dealings of this company. As such, the earlier agreement has been revived. The airport works will be completed in 12 months, he explained.