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Mahindra Satyam has withdrawn from the software development project worth $75 million, which had been promised by Ramalinga Raju to be developed in Australia's Geelong city.
The company's president of corporate affairs, Sujit Baksi, has informed the Victorian government of the same by means of a letter, which is addressed to provincial IT Minister John Lenders.
The planned IT project spread over 10 hectares of land in Deakin University in Geelong was expected to create 2,000 jobs.
According to the daily Geelong Advertiser, Baksi wrote: "The need to concentrate on an extensive internal restructuring program of our business precludes Mahindra Satyam from embarking on expansion projects of this kind."
"While Mahindra Satyam is disappointed that it cannot proceed with the centre, it reaffirms its commitment to future expansion in Victoria when circumstances allow."
A spokesperson of Satyam Australia has confirmed that the project has been revoked.
This announcement comes as a shock as the new owner of Satyam was keen on going ahead with the Geelong Project.
"We're committed to the project, we've got due diligence in place," said Tech Mahindra executive vice-chairman Vineet Nayyar. "The goal is to complete the project but we need to investigate how much investment is needed."
The report also discloses that the cash grant will be paid back by Mahindra Satyam to the Victorian Labour government.
