Will be debt-free on a standalone basis by 2017: Reliance Infra

NEW DELHI - Nov. 30, 2015 - PRLog -- Reliance Infrastructure (R-Infra), a subsidiary of the Anil Ambani-led Reliance Group and India’s largest private sector enterprise power utility and construction company, has announced a tactical shift towards monetizing its road business and cement business.

In a recent interview with the Business Standard, R-Infra CEO, M S Mehta, explained the group’s vision to create long-term value for shareholders by monetizing both its road and cement assets.

R-infra has 11 revenue generating road projects connecting the urban corridors of Delhi, Bengaluru, Pune and Jaipur, with a total investment of Rs 9,000 crore. The group has already initiated the monetisation cycle with five international bidders and the process is expected to be officially closed by the end of the fiscal year.

The group aims to monetise 5.6 mtpa (million tonnes per annum) of operational capacity in its cement portfolio. The cycle has already kick started with seven potential buyers and is expected to be completed by December.


Speaking on the 49 percent stake sale in their Mumbai electricity business, Mehta said that R-Infra has signed a non-binding term sheet with PSP Investment of Canada, wherein it will continue to be the controlling stakeholder with 51 percent ownership. A binding offer is expected by the end of this financial year.

The group has standalone debts worth Rs 16,000 crore, and taking into account the monetisation of road and cements business, diluting 49 percent stake in Mumbai Power, and investments in Pipavav, it is set to be debt-free by the end of FY17 on a standalone basis.

Reliance Group’s defence foray means it needs Rs 12,000 crore as to strengthen its position in the sector. The company sees the sector snowballing into a huge opportunity area worth Rs 20 lakh crore in the next ten years.

In line with its defence expansion, the company has also entered an agreement with the Maharashtra government to develop a 290-acre centre of aerospace excellence in Mihan, Nagpur, to be called the Dhirubhai Ambani Aerospace Park.

Reference Link:-http://www.indiainfoline.com/article/news-top-story/relia...

http://www.relianceada.com/ada/rinfra.html