Govt. Rules out Bailout for Satyam

by UTVi Desk    Jan 15, 2009

The
government today 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
government is not going to directly or indirectly subsidise wrongdoings and
fraud in Satyam," said Ashwani Kumar, minister of state for industry on the
sidelines of a Petrotech-2009 conference.

 

However
he said that
the government will try to ensure to the extent possible that the brand
equity of the country and Satyam, in terms of its intellectual capital, is
preserved and the jobs are secured to the extent possible.

 

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

 

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 prime minister s office declined to
comment on it.

 

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