Karnataka Chief Minister Y S Rajasekhara Reddy has made it clear that Maytas Metro, an infrastructure firm floated by a consortium of Maytas Infra, Navabharat Ventures, Ital Thai and IL&FS, is not in the position to execute the Metro Rail project due to financial constraints.

The CM said, "It is evident that Maytas will not achieve financial closure. We will take a final view on the project in a few days, may be within a week."

The government is working out plans for the revival of project and may shortlist the pre-qualified bidders instead of technical evaluation process. However, government has to face difficulty in the execution of project as the new partner may ask for financial assistance from the government.

An analyst said, "The project may end up as a joint venture between the central and state government with funds from Japanese development banks that are already financing many projects in India."

Meanwhile, the CM declined to comment on the controversy between DGP S S P Yadav and Chief Electoral Officer I V Subba Rao over Mr. Yadav's removal as DGP during general polls. However, the government has initiated efforts to resolve the matter, deputing the chief secretary of state as a mediator.