Should Govt. bail out Satyam??

Government has appointed 3 powerful persons to board of independent director of Satyam. Kiran Karnik, Deepak Parekh and C Achutan , all are renowned persons and are from different fields.

After they assume charge, the two top most target in their minds are:

1. retaining the customers and take them into confidence
2. Arranging funds for its operations

To retain customers, the board will make sure that it communicate with customers and make them believe that the company is committed and will definitely give their hundred percent to complete the project in right perspective.

But the big question is that how they will arrange funds for the operations. The board has indicated that they are thinking of a possible merger with another company or ready to be taken over by another company.

The government has already given a hint that it will bail out Satyam if necessary. Now the big question is that is bailout necessary or is it the right way to bailout a tainted company with tax payers money.

While looking into the bailout package, govt should look into other industry which have been struggling with global recession. The textile industry, gems and jewellery and most of the export oriented business are going into severe losses as funding from overseas stops due to financial meltdown in the west.

This seems to make no news as there is no one to hear their story but the software company and its employees who are earning lakhs of rupees could not bear the burnt and govt shows its eagerness to bail out the company and its employees.

Government should find other alternatives but should not think of wasting public money for this kind of situation.