Latest news with #MeghaEngineeringandInfrastructure
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Business Standard
17-06-2025
- Automotive
- Business Standard
NHAI debars Megha Engineering for one year over NH-66 collapse in Kerala
The National Highways Authority of India (NHAI) has debarred Megha Engineering and Infrastructure (MEIL) from future national highway (NH) projects for a year after probing the collapse on NH-66 in Kerala, it announced on Tuesday. 'An incident of collapse of slope protection works at Cherkkala in Kasaragod district was reported on the Chengala–Neeleshwaram section of NH-66 in Kerala on 16 June 2025. The incident was caused due to improper design, inadequate slope protection works and a poor drainage system,' the NHAI said. The project is on Hybrid Annuity Mode (HAM), under which the concessionaire must maintain the section for 15 years and will reconstruct the slope protection works at their own cost. 'A show cause notice has also been issued to the concessionaire for debarment of one year, including levy of a monetary penalty of up to ₹9 crore,' NHAI said. According to the authority, an expert committee comprising a senior scientist from the Central Road Research Institute (CRRI), a retired professor from IIT-Palakkad and a representative from the Geological Survey of India (GSI) has been constituted to visit the site and review the design and construction of NH-66 in Kerala.
Economic Times
09-06-2025
- Business
- Economic Times
Megha deal: Krishna Reddy plans Rs 15,000 crore buyout of uncle PP Reddy's 51% stake
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 matter. This 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 know. Krishna 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 said. The deal has to be wrapped up by March 2027. Krishna 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 close. Krishna Reddy declined to comment. PP Reddy didn't respond to queries. Clinching 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 two. MEIL 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 Mexico. One 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 rivals. Last 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 authority. The two high-value infrastructure projects worth Rs 14,000 crore had been awarded to MEIL. The controversy forced MMDRA to scrap the tender.
Time of India
09-06-2025
- Business
- Time of India
Megha deal: Krishna Reddy plans Rs 15,000 crore buyout of uncle PP Reddy's 51% stake
Deal set to Wrap Up Next Year ADVERTISEMENT ADVERTISEMENT ADVERTISEMENT Power of two 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.
Time of India
09-06-2025
- Business
- Time of India
Megha Promoter Duo to Engineer Family Settlement
Live Events 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 matter. This 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 ₹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 ₹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 Nadu. While the transmission network has been on the block, a deal is yet to be clinched, insiders said. Against a payment schedule for the ₹15,000 crore settlement amount, only about ₹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 ₹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 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.'
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.
