
NEW DELHI: The government is not ruling out a bail-out package for Satyam Computer. Commerce Minister Kamal Nath said the government will do everything possible to help the company.
The minister's comment comes a day after the government appointed a three-member board to supercede the tainted management, which failed to detect the inflated cash balances and profit numbers.
The Hyderabad-based software giant is running on low capital with its net worth wiped out after founder Ramalinga Raju confessed to inflating figures. While Raju spends time in the jail, the new board is figuring a way out to pull out the firm which has nearly 53,000 employees.
Meanwhile, the government has decided to act tough with Raju’s other companies. The company affairs ministry is inspecting the books of related firms Maytas Infrastructure and Maytas Properties for any alleged irregularities. These firms are presently implementing a host of government projects including the construction of the metro in Hyderabad.
The government is pulling all stops after acting swiftly by appointing its nominees on the board. Sebi chief called on the Prime Minister to inform him of the investigations into Satyam. The government is now keen to ensure that Satyam’s financial health is restored, and the firm regains its earlier leadership position among software exporters.