Indian govt rules out any bailout package for Satyam

New Delhi, Jan 15 (PTI) The Indian government Thursday
ruled out any bailout package for crisis-ridden Satyam
Computer, but assured to do everything required to save jobs
under the framework of its responsibilities.

"This is a decision that the new board of Satyam would
take. This government is not going to directly or indirectly
subsidise wrong doing and fraud in Satyam," Minister of State
for Industry Ashwani Kumar told reporters on the sidelines of
a Petrotech-2009 conference.

When asked, is government not in favour of bailout
package for Satyam as such, Kumar said that the new Satyam
board "... are the ones to decide. The government would try
and support within the framework of its responsibilities and
do whatever it can to preserve and save jobs and to protect
the good name of India in corporate sector".

He said, "The government will try to ensure to the extent
possible that the brand equity of the country and Stayam in
terms of its intellectual capital is preserved and the jobs
are secured to the extent possible".

The minister said, "I do believe that Satyam aberration
should not in any way take away from the great success story
of India in the IT sector."

Earlier speculation was rife that the government is
considering a package of up to Rs 2,000 crore to bail out
Satyam Computer. But shortly after the Prime Minister Manmohan
Singh's review meeting on Satyam on Tuesday, there was media
speculation that government would be considering a financial
assistance ranging between Rs 500 crore and Rs 2,000 crore but
the PMO office declined to comment on it.

However, Commerce Minister Kamal Nath, who attended PM's
review meeting, had said that the government was open to
consider a financial package for Satyam Computer.

The official sources had also indicated that the
government appointed Satyam board had written a letter to the
finance ministry raising concerns about the liquidity crunch
in the troubled company.

Satyam has 53,000 employees and needs over Rs 500 crore a
month to meet the staff cost. Satyam had plunged into a deep
crisis following the founder-chairman B Ramalinga Raju's
admission that he fudged the company accounts to the tune of
Rs 7,800 crore. PTI RR
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