BREAKING NEWS

Friday, September 11, 2009

Satyam pulls out of Oz university project

Mahindra Satyam has pulled out of a 75 million dollars software development project at Deakin University that was set to create 2000 jobs in Geelong, Victoria.

The company's president of corporate affairs, Sujit Baksi, informed the state government of its intention in a letter to IT minister John Lenders.

According to the Geelong Advertiser, Baksi wrote: "The need to concentrate on an extensive internal restructuring program of our business precludes Mahindra Satyam from embarking on expansion projects of this kind.

"While Mahindra Satyam is disappointed that it cannot proceed with the centre, it reaffirms its commitment to future expansion in Victoria when circumstances allow."

A Satyam Australia spokeswoman confirmed that the project had been cancelled, The Australian reports.

According to the report, Baksi committed to Mahindra Satyam paying back the undisclosed cash grant to the Brumby Government, which the company was given to lure it to Geelong.

In July the new owner of Satyam, Tech Mahindra, said it was committed to the project and was investigating its viability.

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