The Andhra Pradesh government is keeping a close watch on the developments in the Satyam group as the fate of the Rs 12,200 crore Hyderabad Metro Rail (HMR) Project has become doubtful due to the turmoil in the group. The anxiety in the government is obvious as set back to the project at this stage would blot Y S Rajasekhara Reddy’s administration.

The government, however, says that "the project is well on track."  

The consortium of Maytas Infra, Navbharat Ventures and Ital Thai got the HMR project contract with a 30-year concession period and entered into an agreement with the Government to execute the project on a build-operate-transfer basis and pay Rs 30,000 crore to the Government during the concession period.

The project has been opposed by the environment groups and has been in the controversy since the beginning. Delhi Metro Corporation Managing Director, E Sridharan has also commented that it is like "selling away the family silver."

Although the controversies have died down, the developments in the Satyam has raised doubts on the HMR project.