Vedanta Aluminium Ltd has terminated its contract with Maytas Infra, owned by former Satyam Computer Services [Get Quote] chairman B Ramalinga Raju's family, for a project in Orissa, sources in the Anil Agarwal group firm said in Bhubaneswar on Monday.

Maytas Infra was entrusted with the task of constructing a township colony at Rs 233 crore (Rs 2.33 billion) in Jharsuguda following a contract in March 2008, a Vedanta official told PTI.

"The contract was terminated as only 10 per cent of the work had been completed during the last ten months for the township project," a source said, adding that Maytas Infra was supposed to complete the work in 18 months. Now construction on the township has virtually come to a standstill, a company official said.

Maytas Infra officials were not available immediately for comment on the development.

After the termination of the agreement, Vedanta would very soon make a full and final settlement of payment with Maytas Infra, which is to receive an estimated Rs 5 crore (Rs 50 million) from the aluminium major, he said.