Thursday, January 15, 2009

Mynampati sends SoS to govt., says Satyam needs Rs. 150 cr. now

Satyam Computer has informed the government that it urgently needs Rs 150 crores to meet staff- related expenses, but official aid appears unlikely with a key minister on Monday saying the firm's new board will arrange funds.

"The company has not asked for any package, they may not need that. They have not sent (request) for a package. If they require, they will raise it from bank," Corporate Affairs Minister Prem Chand Gupta told reporters here.

Satyam's senior executive Ram Mynampati, however, did send an SoS to Economic Affairs Secretary, saying Rs 150 crore was required to meet the health insurance liabilities of the company's employees in the US.

"We have received a mail or two from Mynampati. They indicated that they would need something of the order of Rs 150 crore...," Economic Affairs Secretary Ashok Chawla said.

He did not say when the mails were received. Mynampati is in the US to meet with clients.

The new board appointed by the government to run Satyam, which is struggling to get back on its feet after the disclosure of a Rs 7,800 crore fraud by its founder Ramalinga Raju, has identified tying up funds as a priority.

"It is a private sector company. There is a board in place which consists of eminent people. They know how to run a company... They have to work out how to finance the company's operations," Gupta said.

He said Satyam's board will manage the operations.

Earlier in the day, Chawla said there is no immediate plan for a government bailout for Satyam, although Commerce and Industry Minister Kamal Nath had indicated that the government may extend financial support to the company.

"Not at this stage," Chawla said when asked if the government would offer any bailout to the IT firm now.

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