Reliance Infra expects to be debt free by next year, says Anil Ambani

Reliance Group chairman Anil Ambani today said that Reliance Infrastructure expects to become debt free by next year.
The company's board also approved the deal to sell its Mumbai power business to Adani Transmission valued at Rs 18,800 crore.

Speaking to the press, Ambani said that defence would become the key business of the group in some years.

R-Infra said that it had received approval from all regulatory authorities - Competition Commission of India (CCI), shareholders of the company, Maharashtra Electricity Regulatory Commission, and others for the sale.

The successful completion of the deal is expected to help the company reduce the debt to Rs 7,500 crore from Rs 22,000 crore.

"Have over Rs 5000 cr of cash inflows from past regulatory assets & a further cushion of arbitration yet to be decided worth Rs 8000 cr. Delhi distribution biz will contribute Rs 16k to our revenues. Rel Infra has 11 different road projects with Rs 12k cr investment," Anil Ambani said.

Last week, the company had defaulted on payment of redemption of non-convertible debentures (NCDs) amounting to Rs 133.38 crore. However, it added that it expects to make good the payments from proceeds of the deal.

Anil Ambani also clarified on the allegations levelled against him by Rahul Gandhi on the Rafale deal saying that there is no merit in the charges put forth by him and that they are baseless. He also said that truth alone shall thrive.

Commenting on the strength of the infrastructure arm of the group, Anil Ambani said that even after the sale of its Mumbai business the company "has a strong portfolio of attractive businesses with annuity cash flows ".

(With PTI inputs)