New Delhi:
Government has calculated that it will need two thousand crore rupees to salvage Satyam Computer Services.
This was part of the meeting held by the Prime Minister Manmohan Singh and top ministers and officials.
However, it's not clear how this will be raised or disbursed. The immediate concern is to pay the salaries of some 53 thousand employees.
There's also the political cost that's weighing heavily on the government's mind.
Losing over 50 thousand jobs is political suicide and the image of India after the Satyam fraud has taken a beating.
Shortly after the Prime Minister Manmohan Singh's review meeting on Satyam today, 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.
",We have nothing to say on this,", a top PMO official said when asked about if the government was considering giving financial aid to Satyam which is confronting a cash crisis.
Meanwhile, official sources indicated that the government appointed Satyam board has written a letter to the finance ministry raising concerns about the liquidity crunch in the troubled company.
Talking to reporters after the first meeting of the new board in Hyderabad, HDFC chairman Deepak Parekh, who is member of the board, had said, ",Working capital issues require immediate attention and we will work with the team to tide over this situation.
On Tuesday, the prime minister held an exhaustive meeting with top Cabinet colleagues, including Pranab Mukherjee and P Chidambaram, to explore all options to salvage the scam-tainted Satyam Computer.
",We are looking at different possibilities.,", Corporate Affairs Minister Prem Chand Gupta emerging from the meeting told reporters.
Commerce and Industry Minister Kamal Nath, who had yesterday said that the government was open to consider a financial package for Satyam, and Planning Commission Deputy Chairman Monetk Singh Ahluwalia also attended the review meeting held a day after the first meeting of three-member government appointed board.
",We appraised the Prime Minister and other ministers of the situation and what action has been taken, what is being done and what will be done,", Gupta told reporters.
After its first meeting yesterday, the government appointed Satyam board had clearly indicated that the liquidity crunch was an immediate priority to carry out business and restoring confidence of 53,000 strong employees and clients.
Today's meeting comes in the wake of the Centre ordering investigations into Satyam by Serious Fraud Investigation Office (SFIO).
Sources also said the issue of cash crunch figured during the review meeting. The government is yet to appoint more directors on the board of Satyam.
The prime minister yesterday asked Cabinet Secretary K M Chandrasekhar to take a coordinated action between various government agencies and regulators on Satyam issue.
He has already held discussions with SEBI Chairman C B Bhave on the developments.(With PTI inputs)
Government has calculated that it will need two thousand crore rupees to salvage Satyam Computer Services.
This was part of the meeting held by the Prime Minister Manmohan Singh and top ministers and officials.
However, it's not clear how this will be raised or disbursed. The immediate concern is to pay the salaries of some 53 thousand employees.
There's also the political cost that's weighing heavily on the government's mind.
Losing over 50 thousand jobs is political suicide and the image of India after the Satyam fraud has taken a beating.
Shortly after the Prime Minister Manmohan Singh's review meeting on Satyam today, 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.
",We have nothing to say on this,", a top PMO official said when asked about if the government was considering giving financial aid to Satyam which is confronting a cash crisis.
Meanwhile, official sources indicated that the government appointed Satyam board has written a letter to the finance ministry raising concerns about the liquidity crunch in the troubled company.
Talking to reporters after the first meeting of the new board in Hyderabad, HDFC chairman Deepak Parekh, who is member of the board, had said, ",Working capital issues require immediate attention and we will work with the team to tide over this situation.
On Tuesday, the prime minister held an exhaustive meeting with top Cabinet colleagues, including Pranab Mukherjee and P Chidambaram, to explore all options to salvage the scam-tainted Satyam Computer.
",We are looking at different possibilities.,", Corporate Affairs Minister Prem Chand Gupta emerging from the meeting told reporters.
Commerce and Industry Minister Kamal Nath, who had yesterday said that the government was open to consider a financial package for Satyam, and Planning Commission Deputy Chairman Monetk Singh Ahluwalia also attended the review meeting held a day after the first meeting of three-member government appointed board.
",We appraised the Prime Minister and other ministers of the situation and what action has been taken, what is being done and what will be done,", Gupta told reporters.
After its first meeting yesterday, the government appointed Satyam board had clearly indicated that the liquidity crunch was an immediate priority to carry out business and restoring confidence of 53,000 strong employees and clients.
Today's meeting comes in the wake of the Centre ordering investigations into Satyam by Serious Fraud Investigation Office (SFIO).
Sources also said the issue of cash crunch figured during the review meeting. The government is yet to appoint more directors on the board of Satyam.
The prime minister yesterday asked Cabinet Secretary K M Chandrasekhar to take a coordinated action between various government agencies and regulators on Satyam issue.
He has already held discussions with SEBI Chairman C B Bhave on the developments.(With PTI inputs)
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