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JSW to snap ties with Maytas, cancel two township contracts
28 Jan 2009, 2209 hrs IST, PTI
MUMBAI: Sajjan Jindal-led JSW Group today said it would cancel the Rs 96-crore township project given to Maytas Infra, a company run by the
family of tainted Satyam founder Ramalinga Raju.
"We will change the contractor (Maytas Infra) for our two projects -- Ratnagiri in Maharashtra and Vijayanagar in Karnataka," JSW Steel Vice-Chairman and Managing Director Sajjan Jindal told reporters here.
The diversified conglomerate said it would not like to do business with a company involved in a "scam".
"We would not like to do business with a company that is involved in any scam. There is no one in that company anymore to whom we can complain in case of a slowdown (in work). So (it is) better to change the contractor," Jindal said.
The decision to cancel the contracts comes barely a fortnight after the JSW Group expressed confidence in the beleaguered firm and said it was "happy" with the progress on the projects.
JSW Group had given the Rs 53.60 crore order to build a township at Vijaynagar in Karnataka in September 2007, by way of competitive bidding, to the infrastructure company. Maytas Infrastructure bagged another order worth Rs 42.91 crore to construct the township in Ratnagiri in August 2008.
For the Ratnagiri project, JSW did not pay any advance while for the twonship contract in Karnataka it has paid less than the work done by Maytas, he said.
"One contract which is for our energy company at Ratnagiri has not started and we have not made any payment. They (Maytas) had not even given the bank guarantee and unless they give a bank guarantee we can not pay them advance," he said.
"For the township project in Vijayanagar, advances paid by us are less than the work Maytas has done," he said.
JSW to snap ties with Maytas, cancel two township contracts
28 Jan 2009, 2209 hrs IST, PTI
MUMBAI: Sajjan Jindal-led JSW Group today said it would cancel the Rs 96-crore township project given to Maytas Infra, a company run by the
family of tainted Satyam founder Ramalinga Raju.
"We will change the contractor (Maytas Infra) for our two projects -- Ratnagiri in Maharashtra and Vijayanagar in Karnataka," JSW Steel Vice-Chairman and Managing Director Sajjan Jindal told reporters here.
The diversified conglomerate said it would not like to do business with a company involved in a "scam".
"We would not like to do business with a company that is involved in any scam. There is no one in that company anymore to whom we can complain in case of a slowdown (in work). So (it is) better to change the contractor," Jindal said.
The decision to cancel the contracts comes barely a fortnight after the JSW Group expressed confidence in the beleaguered firm and said it was "happy" with the progress on the projects.
JSW Group had given the Rs 53.60 crore order to build a township at Vijaynagar in Karnataka in September 2007, by way of competitive bidding, to the infrastructure company. Maytas Infrastructure bagged another order worth Rs 42.91 crore to construct the township in Ratnagiri in August 2008.
For the Ratnagiri project, JSW did not pay any advance while for the twonship contract in Karnataka it has paid less than the work done by Maytas, he said.
"One contract which is for our energy company at Ratnagiri has not started and we have not made any payment. They (Maytas) had not even given the bank guarantee and unless they give a bank guarantee we can not pay them advance," he said.
"For the township project in Vijayanagar, advances paid by us are less than the work Maytas has done," he said.
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