Power Grid May Revoke Contracts Awarded to Maytas, Mint Reports

By M.C. Govardhana Rangan

Feb. 3 (Bloomberg) -- India’s Power Grid Corp. may revoke seven contracts awarded to Maytas Infra Ltd., Mint reported.

The states of Orissa and West Bengal have asked Power Grid to cancel the contracts, according to the report, which quoted an unidentified official from Power Grid. The contracts are worth 3.95 billion rupees ($81 million), the newspaper said.

Delaying the projects may affect the federal government’s plan to provide electricity to 125,000 villages, Mint said.

Maytas is associated with Satyam Computer Services Ltd., which is embroiled in India’s biggest fraud inquiry.

To contact the reporter on this story: M.C. Govardhana Rangan in Mumbai at grangan@bloomberg.net.