SREI Infrastructure Finance come out unscathed by SATYAM

8 Jan 2009, 2013 hrs IST, Anuradha, ET Bureau

SREI Infrastructure Finance appears to have come out unscathed in the aftermath of the
Satyam fraud as it had no equity exposure in the proposed Rs 1600-crore Machilipatnam port project being promoted jointly by Maytas Infra in consortium with Nagarjuna Construction Co (NCC).

When contacted by ET, SREI Infrastructure Finance's chairman & managing director Hemant Kanoria said: "About three years ago, we had expressed our intent to take equity exposure in the project. However, since we did not receive a detailed project report, we have not taken a call on the Machilipatnam project till date." However, the company is believed to have made an initial investment of Rs 2-3 lakh in this venture so far.

"If and when approached by companies, we as an infrastructure equipment and project financing institution evaluate the viability of projects. We also assess whether it makes financial sense to invest in the company," Mr Kanoria added. Investment decisions are taken only after a detailed project report is ready and financial viability ascertained.

In the wake of the Satyam saga, we will wait for the government's stand on the project before taking a call," Mr Kanoria said.

It may be mentioned that the Hyderabad-based construction and infrastructure development company Maytas Infra along with Nagarjuna Construction Company, SREI Infrastructure Finance and Sarat Chatterjee & Company bagged a contract for construction of an all weather deep water port at Machilipatnam from Andhra Pradesh government.

The proposed port, which is well connected by road and rail and is in close vicinity of Gannavaram airport, will be able to handle coal requirements of Vijayawada Thermal Power Plant and other cement plants spread in the Krishna belt. On completion, the Machilipatnam Deep Water Port will be equipped to handle exports of agricultural produce, minerals and other commodities from the surrounding districts.

VIA:E.T