RCom to cut debt to below Rs 20,000 cr over 2 years; 4G roll-out in 2015
The company requires capex to the tune of Rs 1,000- 1,500 crore every year for its sustainable maintenance of its infrastructure.<br />
Mumbai: Reliance Communications today said it plans to reduce its debt to below Rs 20,000 crore in the next couple of years and also will roll out 4G services by next fiscal.
"We will participate in auctions next year and will be in a position to launch 4G services in 2015," Reliance group chairman Anil Ambani told at the 10th annual general meeting of the company.
On the plans to bring down the huge debt pile of over Rs 35,000 crore of the company, Ambani said, "Our aim is to bring debt to below Rs 20,000 crore in the next 24 months. We have recently reduced our debt by Rs 6,000 crore through a qualified institutional placement."
The company requires capex to the tune of Rs 1,000- 1,500 crore every year for its sustainable maintenance of its infrastructure.
"Rs 1,000- 1,500 crore is required as capex for sustainable maintenance as major investments are behind us," Ambani said.
The company is looking at demerger of land banks from RCom and then go for separate listing.
"Non-core businesses like real estate and DTH will be monetised. We are looking at various options to monetise these two assets. One option is demerger of land banks from RCom and then go for separate listing," Ambani said.
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Reliance Communications is yet to receive approval from the telecom department to proceed with the sale of its wireless assets.
Dues settlement row: Reliance Communications says Ericsson attempting media trial, endangering interest of creditors
RCom said it remains committed to clear dues of Ericsson from spectrum realisation. However, the approval for the same is pending with the government
RCom is under debt resolution process under the Insolvency and Bankruptcy Code, 2016 (IBC) and has not been paying any dues till the completion of the process.