Online BusinessSatyam granted one year extension to complete SEZs
The government has granted one year extension to Satyam Computer Services for completion of three special economic zones (SEZ) in Andhra Pradesh, giving elbow room to the new management of the IT firm.
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The Commerce Ministry has granted extension of time to Satyam"s two IT/ITeS SEZs in Hyderabad and the one at Thotlakonda in Visakhapatnam up to June 2010.
All the three tax-free enclaves were given formal approval, which would have lapsed by end of this month.
While the ministry granted extension of time "on file", the decision has to be ratified by the inter-ministerial Board of Approval which is meeting here on June 17.
Satyam had planned a total investment of Rs 370 crore on its SEZ projects. About half of the SEZs are coming up in the IT/ITeS sector.
Satyam Computer, which was counted as a premier IT firm, faced a severe cash crunch in the last few months following the revelation of multi-crore rupee accounting fraud by its founder B Ramalinga Raju in January 2009.
However, with Tech Mahindra acquiring a majority stake, the company is in a recovery mode. It posted a consolidated net profit of Rs 160.50 crore for the quarter ended December 2008.