No bailout for Satyam at this stage: Government

The government is not considering a bailout plan for scam-tainted Satyam Computer Services at this stage, economic affairs Secretary Ashok Chawla told reporters here.

"The government, at this stage, is not looking at any direct support or bailout to the company," Mr Chawla told reporters on the margins of an international petroleum conference

. He, however said that a senior executive of Satyam, Ram Mynampati, has asked for government aid of Rs 150 crore to take care of the health insurance liabilities of employees in the US.

Mr Chawla said that the request was made in a mail from Mr Mynampati, who is now in the US to calm the nerves of Satyam's clients after its founders admitted fabrication of accounts.

"We've received a mail or two from Mynampati. It said they urgently need something of the order of Rs 150 crore to take care of the health insurance liabilities of staff in the US," he said. The secretary also said that while Satyam can have as many as 10 board members, no decision has yet been taken to expand the number of members from the present three.

Corporate Affairs Minister Prem Chand Gupta has, in the meanwhile, said that no formal request from the company with a new state appointed board has been received. A formal request has to come with board approval.

"The company has not asked for any package. Three days ago, a new board has been appointed. These (are) eminent persons. They are on the job," he told reporters here. "If the company requires, they will raise from banks," the minister added.

A delay in funding may make it harder for Satyam to convince clients including Nestle SA and Telstra Corp. to remain and save all the Hyderabad-based company's 53,000 jobs.