State project deals with Maytas Infra to stay

M. Malleswara Rao

HYDERABAD: The State government has decided against scrapping any of the agreements signed with the consortia to execute irrigation projects with Maytas Infra Limited as lead player .

The government took this crucial decision on Wednesday after going through the two reports submitted by B. S. N. Reddy and M. K. Rahaman, both engineers-in-chief, Irrigation. In his report, Mr. Reddy stated that all the bank guarantees provided by Maytas against the mobilisation advance from the government were “valid.” The feedback obtained by the department from the field level engineers too indicated that the works on the projects with which Maytas is connected, were not affected and instead, they were going on in full swing. He, therefore, saw no risk to the projects.

Mr. Rahaman, in his report, on the other hand, identified the special clause included in all the irrigation agreements which could be invoked to give the lead player role to other companies in a consortium if Maytas failed to fulfil its obligations.


The clause would also be used to make the rest of the consortium members accountable to the government for execution of the project. These companies would continue to implement the projects claiming the cost from Maytas “as per its share in the works and other liabilities”, sources stated. However, they said, the decision not to scrap the agreements with Maytas doesn’t apply to the Rs. 12,132-crore Metro Rail project.

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