Centre may bail out Satyam, says Andhra CM

10 January 2009

The central government is weighing a bail-out package for the scandal-hit Satyam Computer Services, said  Andhra Pradesh chief minister Y S Rajasekhara Reddy. He did not elaborate.

''Anything like this will have an adverse impact. Let us look into it and hope we can manage it,'' Reddy said on the sidelines of the Pravasi Bhartiya Divas meeting in Chennai. ''None of us expected this, it is a shock to us," he added.

Reddy also said the scandal "would have adverse impact to the investments coming to Andhra Pradesh."

The state government has other reasons, too, to insist on a bailout of Satyam. Its sister concern and construction outfit Maytas Infra has bagged several government orders, including Hyderabad metro rail project, Machilipatnam port project and several airport projects in the state.

The construction company, which is promoted by Raju's sons, is 36 per cent owned by Satyam Computer Services.

"Maytas is one of the investors in Metro Rail, so if the project is still viable, it can go ahead," the chief minister said, adding, the chief secretary is looking into their work.