Can Maytas stay afloat?

Just when it needed all the luck to stay afloat, Maytas Infra, the infrastructure development company promoted by the Ramalinga Raju family, has lost one of its biggest assignments— the Rs 12,000-crore Hyderabad Metro Rail project—after failing to fulfil its contractual obligations of either achieving financial closure or submitting a bank guarantee of Rs 240 crore by March 17.

So, can Maytas stay afloat? Government-appointed board member and company Chairman K Ramalingam is hopeful when he says: “We are now in a stable position to execute the projects.” However, it’s likely that Maytas would need more than just good execution skills to stay afloat.

What gives it hope

• A Rs 7,525-crore order book.
• Four government-appointed members on its board since April.
• Has secured a fund and non-fund corporate debt restructuring package wherein bankers are to pay Rs 100 crore as working capital and provide Rs 200 crore as bank guarantee.

What it has lost

• Lost the Rs 12,000 crore Hyderabad Metro Rail project that a consortium led by Maytas bagged last year.
• Has not bagged any major project after January 7, 2009.
• Manpower is down from 3,000 to 1,800.