Latest news with #MeghaEngineering
India Today
12-07-2025
- Business
- India Today
Megha Engineering fined Rs 94.6 crore for illegal mining in Maharashtra's Jalna
Hyderabad-based Megha Engineering Infrastructure Ltd has been fined Rs 94.68 crore for illegal excavation of minor minerals during road construction in Maharashtra's Jalna district, Maharashtra Revenue Minister Chandrashekhar Bawankule informed the legislative assembly on violations occurred along the Shegaon and Pandharpur pilgrimage routes, prompting multiple penalty orders - Rs 38.70 crore by the additional district collector of Jalna and Rs 55.98 crore by the Partur issue was raised by BJP MLA Babanrao Lonikar during the session. To secure the release of its seized machinery, Megha Engineering deposited Rs 17.28 lakh, amounting to one percent of one of the fines, while simultaneously challenging the orders. However, the additional revenue divisional commissioner in Chhatrapati Sambhajinagar rejected the Bawankule also revealed that seven additional cases are pending against the company, suggesting sustained regulatory development adds to the company's mounting legal troubles. Earlier this year, the Mumbai Metropolitan Region Development Authority (MMRDA) cancelled a contract awarded to Megha Engineering after rival bidder l&T challenged the tender process in the Supreme Court, alleging being involved in major infrastructure projects across India in sectors such as roads, irrigation, and urban development, Megha Engineering now faces increasing setbacks both legally and contractually.- Ends
Time of India
02-07-2025
- Business
- Time of India
Oppn protests govt contract to ‘favourite contractor'
Mumbai: The Opposition on Wednesday protested outside the state assembly against Megha Engineering over the contract for the Thane-Borivli tunnel project, accusing Mahayuti govt of favouring the company and alleged it was a Rs 3,000 crore scam. The tender process for the project was cancelled in May after L&T, which was disqualified, moved Supreme Court. Megha Engineering was among top purchasers of electoral bonds. The main beneficiary of electoral bonds was BJP. The Opposition alleged that the contract was awarded as the state govt benefited from electoral bonds. They held placards saying, "Megha Engineering is govt's favourite contractor", and shouted slogans, "BJP looted public money... contractor is benefiting while farmers go hungry." TNN You Can Also Check: Mumbai AQI | Weather in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai
Economic Times
22-06-2025
- Business
- Economic Times
Controversies cloud this infra giant's ascent
Second only to L&T, but controversies may weaken Megha Engineering's growth story For MEIL, a company once admired for its efficiency, the road ahead will demand more than engineering excellence — it will require regaining public trust. Looking for quick buck in unlisted shares? Better think twice! HDB Financial Services, backed by HDFC Bank, has launched an INR12,500 crore IPO at a price band of INR700 – INR740, nearly 40% below its grey FONT SIZE SAVE PRINT COMMENT Refer & Earn
Hans India
19-06-2025
- Business
- Hans India
India's largest underground LPG storage cavern unveiled
Mangaluru: A landmark achievement in India's energy infrastructure was realised with the completion of the nation's largest underground liquefied petroleum gas (LPG) storage cavern in Mangaluru. Capable of holding 80,000 metric tonnes of LPG, this state-of-the-art facility bolsters the country's capacity to meet critical energy demands, particularly during emergencies. The cavern, developed by Megha Engineering under the central government's oversight, underwent a rigorous Cavern Acceptance Test (CAT) from May 9 to June 6 to verify its safety and operational integrity. This marks the third underground storage facility in the Mangaluru region, joining the existing crude oil caverns at Permude (1.5 lakh metric tonnes) and Padur (2.5 lakh metric tonnes). Unlike its predecessors, this cavern is dedicated exclusively to LPG, surpassing the 60,000-tonne capacity of a similar facility in Visakhapatnam to claim the title of India's largest. Approved by the central government in 2018, construction began in 2019 and culminated at a cost of Rs. 800 crore. The facility, carved 500 meters beneath the earth's surface through solid rock, is supported by a newly completed pipeline system connected to a floating jetty in the sea, enabling efficient LPG transfer. This development strengthens India's energy security, ensuring a robust supply chain for LPG across the region. Authorities anticipate the facility will play a pivotal role in stabilising gas availability, reinforcing Mangaluru's growing significance as a hub for strategic energy reserves say the company officials.
Time of India
09-06-2025
- Business
- Time of India
Megha deal: Krishna Reddy plans Rs 15,000 cr buyout of uncle PP Reddy's 51% stake
Megha Engineering's shareholders, the Reddy duo, are finalizing a family settlement where PV Krishna Reddy will acquire Pamireddy Pitchi Reddy's 51% stake for around Rs 12,000-15,000 crore. Krishna Reddy plans to raise funds through asset monetization and financial institutions to complete the deal by March 2027. The infrastructure giant's rise has been marked by both success and controversy. Tired of too many ads? Remove Ads Deal set to Wrap Up Next Year Tired of too many ads? Remove Ads Power of two Tired of too many ads? Remove Ads Beyond Business Mumbai|New Delhi: The two principal shareholders of Megha Engineering and Infrastructure (MEIL), the Reddy uncle-nephew duo, are finalising a family settlement, said people with knowledge of the will see PV Krishna Reddy buying out uncle Pamireddy Pitchi Reddy's controlling interest three decades after the two started their entrepreneurial journey with small pipes for municipalities. It's since become a $5-billion, privately held infrastructure conglomerate that's among the largest in the country, said the people in the Reddy, with a net worth of $2.2 billion as per Forbes, is in talks with financial institutions to raise as much as Rs 12,000-15,000 crore to buy out his uncle's 51% stake in the holding company. Krishna Reddy owns the remaining 49%.According to the people cited, the services of a former chief justice of India were used to finalise the terms of settlement, which has been in the works for over two years. These have now been formalised and the valuations agreed upon, they deal has to be wrapped up by March Reddy is planning to raise part of the funds from private structured credit and special situation funds such as Kotak Alternate Asset Managers, Varde and Farallon. He's also in discussions with global banks such as Deutsche aims to partly or fully monetise some assets to raise the residual financing. One such asset is a power transmission project in western Uttar Pradesh, for which offers have come from domestic infrastructure groups, said officials involved. The nephew expects to raise almost half the settlement amount—about Rs 7,000 crore—from the sale of the interstate transmission lines and the substation have also been taking place with some of the largest global funds to divest the city gas unit. Megha City Gas Pvt Ltd is operational in 62 districts across eight states including Punjab, Maharashtra, Madhya Pradesh, Andhra Pradesh and Tamil the transmission network has been on the block, a deal is yet to be clinched, insiders said. Against a payment schedule for the Rs 15,000 crore settlement amount, only about Rs 1,000 crore has been paid so operations and maintenance wing of Olectra Greentech, the only listed entity of the group, may also be hived off to raise funds, said the people cited. Megha Engineering is the promoter of the company that makes e-buses and composite polymer insulators with a 50% stake. Between July 2023 and February 2024, the stock of Olectra Greentech more than doubled in value, sending it to an all-time high of over Rs 2,200. The stock was down 45% from those levels at the Friday Reddy declined to comment. PP Reddy didn't respond to the settlement was not easy, said the people cited, given that there was interest from one of the country's richest men—whose conglomerate is invested heavily in infrastructure—in the 51% stake of Reddy senior. According to people in the know, Krishna Reddy sought the aid of top political leaders to ward off this flamboyant uncle, PP to his friends, comes from humble origins in the Krishna district of Andhra Pradesh. Within two years of starting the business, he roped in his nephew. After initial success in irrigation projects, the group diversified into natural gas distribution, roads, dams, tunnelling, engineering, procurement and construction (EPC) and hydrocarbons, among 2006, the company's name was changed to the current one from Megha Engineering Enterprises.'Megha is a classic case study of the rise of the Telugu businessman under YSR Reddy's irrigation boom,' said the managing director of another Hyderabad-based diversified group, referring to the deceased chief minister of the undivided state. 'Like several of their peers in business and community, they started doing PWD (public works department) contracts only to become massive. It's a similar trajectory taken by other families that run GMR, IVRCL, Navayuga, NCC, Ramky etc. Several amassed enormous wealth but succumbed to debt pressures. Megha has only grown bigger.'This meteoric rise brought them into the national spotlight but also into regulatory and corporate crosshairs. Following the disclosure that Megha had bought electoral bonds worth Rs 966 crore, allegations of a quid pro quo for government contracts surfaced. The company has always denied any Reddy was responsible for expanding operations, acquiring companies in Italy for instance, said the people cited. This has helped the group expand in Asia, Africa and Latin America and form joint ventures such as the one with China's BYD for electric vehicles (EVs). However, the joint venture's plan to make EVs in India has been stuck for years due to Press Note 3, which mandates government approval for investments from countries that share a land border with India. This is specifically aimed at China due to the testy ties between the acquired the oil and gas division of the Trevi Group , which included Drillmec SpA and Petreven SpA (Italy) for 116.4 million euros in 2020. Drillmec is a global manufacturer of oil and gas drilling rigs and related equipment. It currently operates rigs in Venezuela and of the reasons for the uncle stepping aside is age, said people who know him.'PP is turning 70 soon and he wants to now retire and lead the good life,' said a long-time family friend. 'Krishna is firmly in the saddle and the family, instead of bickering, came to an understanding. There were initial differences in terms of valuations, but that is very common. Now Krishna is busy organising funds to fast-track the buyout. I will not rule out an IPO down the line as well. The asset sales will also help prune the vast portfolio.'MEIL's marquee project wins — the Zojila Road Tunnel , Char Dham Rail Tunnel, Thane Borivali twin tunnel project, Machilipatnam Port, Tuticorin Thermal Project , BKC bullet train terminal and Kaleshwaram Lift Irrigation Project — have faced controversy and challenges by month, L&T took the Mumbai Metropolitan Region Development Authority (MMRDA) to the Supreme Court after its bid for the construction of a road tunnel between Gaimukh and Fountain Hotel Junction and an elevated road along the Thane-Ghodbunder corridor--key links in Mumbai's coastal road initiative--were rejected by the civic two high-value infrastructure projects worth Rs 14,000 crore had been awarded to MEIL. The controversy forced MMDRA to scrap the tender.
