Satyam loses 100 crore Indian Railways' contract
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Satyam loses Rs.100 crore Indian Railways' contract
Bangalore: Indian Railways has cancelled a locomotive management system (LMS) contract awarded to Satyam Computer Services (now Mahindra Satyam) in January this year. This step has been taken by the government after the company failed to meet the deadline for submitting required financial details and start its work on the pilot project. A senior railways official told Economic Times, "After non-delivery of the pilot, we served a notice around one and half months ago." The value of the LMS contract is less than 100 crore, but it could help vendors to chase similar contracts worth up to 3,000 crore more effectively. Apart from Mahindra Satyam, rivals TCS, Infosys, Wipro and HCL are all aggressively bidding for these contracts. "We have already received three applications, including from Wipro, after we issued a new tender for the same project," said a railways official. Mahindra Satyam was the lowest bidder for the first in a series of outsourcing contracts worth almost 2,000 crore to be awarded by Indian Railways in January earlier this year. "Since we were not able to meet the statutory requirements of submitting the audited financial statements for last three years as required by the Indian Railways, the contract awarded to us was cancelled. There is no question of losing the contract," said Sridhar Maturi, Spokesman, Mahindra Satyam. However, Mahindra Satyam still sees opportunities for gaining new business from railways. "Mahindra Satyam is free to participate in bidding for future projects for Indian Railways and it has not been blacklisted by them," said Maturi.

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