Satyam's hopes for a Rs2,000 crore bailout may be dashed. The minister of state for industry Ashwani Kumar has categorically said that the government is not going to directly or indirectly subsidise wrong doing and fraud in Satyam.
However the minister assured it would do everything required to save jobs under the framework of its responsibilities.
Also the Central Bureau of Investigation is likely to probe the Satyam deal at the behest of Andhra Pradesh chief minister Y S R Reddy. Reddy has been requesting for a CBI investigation from the day the Satyam scam broke out.
Satyam's former interim CEO Ram Mynampati has asked the government aid of over an email to provide Rs150 crore to help the company meet payments on health insurance costs for its employees based in the US.
The cost of paying wages of the 53,000 employees of Satyam is Rs500 crore per month.
Earlier, Deepak Parekh, member of the newly formed Satyam board said Satyam's working capital requirements needed immediate attention and that he expects the government to provide temporary liquidity to Satyam to overcome the crisis. The amount of liquidity required has not yet been determined, he added.
A 3-member board comprising HDFC chairman Deepak Parekh, the government formed former NASSCOM chief Kiron Karnik and former SEBI board member C Achuthan to oversee the functioning of Satyam Computers.
Apparently the board has not yet requested a bailout but is considering bank sources to raise finances.
The survival of Satyam is considered a key factor in restoring the credibility to IT sector in particular and India Inc in general. The board has appointed KPMG and Deloitte to restate the accounts which came under fire after the founder chairman announced a massive fraud.