Tech M to complete Satyam's $75 million Oz project

Tech Mahindra [ Get Quote ], the new owner of troubled IT services firm Satyam [ Get Quote ], has for the first time confirmed its continued commitment to a $75 million software development project in Geelong, Australia [ Images ].

There were grave concerns that the project would be axed after Satyam Computer Services founder and chairman B Ramalinga Raju [ Images ] [ Images ] admitted to a $1 billion accounting fraud in January.

Tech Mahindra executive vice-chairman Vineet Nayyar said construction of the 10ha development on Deakin University grounds would begin as soon as discussions with the Victorian government were complete. He said the company is determined to complete the project.

However, he warned that certain aspects of the initial agreement, including funding, could change.

'We're committed to the project ... we've got due diligence in place,' said Nayyar, who is currently visiting Australia.

'The goal is to complete the project but we need to investigate how much investment is needed,' The Australian quoted him, as saying.

The Geelong project was announced more than a year ago with Satyam as the main financial backer in partnership with the Victorian state government, the city of Greater Geelong and Deakin.

The software hub promises to create 2000 jobs, a much-needed boost for the region in the wake of industry retrenchments.