Tech Mahindra to complete Satyam’s 75-mn dollars Australian project

Wednesday, July 1, 2009

MELBOURNE - Tech Mahindra, the new owner of troubled Indian IT services firm Satyam, has for the first time confirmed its continued commitment to a 75 million dollars software development project in Geelong, Australia.

There were grave concerns that the project would be axed after Satyam Computer Services founder and chairman, B. Ramalinga Raju, admitted to a one billion dollar accounting fraud in January.

Tech Mahindra executive vice-chairman Vineet Nayyar said construction of the 10ha development on Deakin University grounds would begin as soon as discussions with the Victorian government were complete and the company is determined to complete the project.

However, he warned that certain aspects of the initial agreement, including funding, could change.

“We’re committed to the project … we’ve got due diligence in place,” said Nayyar, who is currently visiting Australia.

“The goal is to complete the project but we need to investigate how much investment is needed,” The Australian quoted him, as saying.

The Geelong project was announced more than a year ago with Satyam as its main financial backer in partnership with the Victorian state government, the City of Greater Geelong and Deakin.

The software hub promises to create 2000 jobs, a much-needed boost for the region in the wake of industry retrenchments. (ANI)

Filed under: Satyam, World

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