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MMTC pulls out of SEZ plan with Maytas

January 16, 2009 17:38 IST

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Government-run trading firm MMTC decided on Friday to withdraw from equity participation in a firm to be promoted by B Ramalinga Raju-linked Maytas Group for setting up a multi-services special economic zone.

The decision to withdraw from participating in the special purpose vehicle, being promoted by the Matyas Group, was taken by the MMTC board.

"In view of the recent developments related to Satyam Computer Services [Get Quote]. . .the board of directors of MMTC at its meeting on Friday reconsidered the investment proposal and decided to withdraw MMTC's participation in the equity of the propososed Special Purpose Vehilce being created by Maytas Group for setting up a multi-services SEZ," MMTC said.

MMTC was in the process of receiving shareholders' approval for investing Rs 85.85 crore (Rs 858.5 million) and picking up up to a five per cent stake in the Maytas Group's SPV for the SEZ.

The $5-billion trading major, under the administrative control of the commerce ministry, has also withdrawn the postal ballot it had sent on December 19 for seeking shareholders' approval for the proposal to join hands with the infrastructure group promoted by Ramalinga Raju's family.

Maytas has plans to set up six IT/ITes SEZs in Andhra Pradesh, of which, three zones has already been notified by the government and rest are been granted formal approvals.

The developers of these SEZs are Maytas Enterprises, Maytas Ventures SEZ Pvt Ltd and Maytas Hill Country SEZ Ltd.

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