Bhubaneswar, Jan. 20: Ripples of the Satyam scam have hit the state too.

The state government today put land and water allotment on hold for the proposed thermal power plant promoted by KVK Nilachal Power Private Limited, a joint venture company in which Maytas has 50 per cent equity, asking for documents to satisfy that there will be no financial and legal problem in implementation of the project.

“We wanted to know from KVK Nilachal officials as to what would be their relationship with Maytas and whether they would be able to arrange funds in case the latter withdraws,” energy secretary P.K. Jena said.

KVK Nilachal officials assured to furnish the supporting documents by end of this month and the state government would then take a view on the land and water allotment to the project, said Jena.

Earlier, energy minister Surya Narayan Patro had asked the department officials to review the status of the project in the wake of crisis in Maytas — headed by son of Satyam founder B. Ramalinga Raju — following the fraud in the IT giant and suspend land and water allotment.

Jena said the company officials today showed the shareholder agreement signed between Hyderabad-based KVK Energy and Maytas Infra for the first unit of thermal power project proposed to be set up at Kandarei near Athgarh in Cuttack district.

According to the agreement, the two equity holders were supposed to provide equity worth Rs 135 crore each for the first unit. However, both the partners have deposited only Rs 45 crore each, Jena said. For the entire Rs 5,000-crore project, Maytas is supposed to give an equity worth Rs 255 crore out of total Rs 1,000 crore equity capital of the project.

As the state government officials wanted to know about the fate of the project, KVK Energy officials assured that they would arrange the balance equity themselves if Maytas backed out. They also claimed that the investors had agreed to finance the project in case of withdrawal of Maytas from the joint venture project, said Jena.

They promised to furnish the supporting documents after a meeting of stakeholders to be held on January 23, he said.