RInfra set to become debt-free by next year: Anil Ambani
Mumbai, Sep 18 : Reliance Infrastructure (RInfra) Chairman Anil Ambani on Tuesday said he expects the company to become debt-free by next year with the best credit ratings to match following the sale of its Mumbai power business to Adani Transmission for Rs 18,800 crore earlier this year.
Addressing the company's annual general meeting here, Ambani said RInfra is on track to transform into a capital-light, high-growth, high-dividend company that will create more value for shareowners.
"We fully expect to be zero-debt by next year, with top-end credit ratings to match," the Chairman said.
"This year, we have successfully concluded the sale of our integrated Mumbai power business for a total consideration of Rs 18,800 crore -- the largest-ever quantum of debt reduction in the history of India's power sector."
This single transaction will help the company reduce its debt by 65 per cent, from around Rs 22,000 crore to Rs 7,500 crore.
Ambani said that defence, which has limited private sector participation in India, is a focus area for the company and would become the key business of the group in some years.
"We have entered into multiple partnerships with leading OEMs (original equipment manufacturers) from across the world, building a technology platform that is set to transform defence into one of our fastest growing verticals in the next 5 years," he said.
Speaking of the company's Delhi distribution business which distributes peak power of 5,000 MW and has a growth rate of over 5 per cent, Ambani said the debt of Delhi discoms has come down by 80 per cent, from a peak of Rs 8,000 crore to Rs 1,500 crore.
"Delhi discoms have reduced their AT and C (aggregate technical and commercial) losses from 57 per cent to just 9 per cent - the best performance across the distribution ecosystem in India," he said.
Ambani informed the AGM that the company has already won arbitration awards worth Rs 6,300 crore against various government agencies which are yet to be paid out, while arbitrations of another Rs 8,000 crore under advanced stages of approval.
"It is an unfortunate fact of doing business in India that despite amendments to the Arbitration Act by the Central government and clarity from the Supreme Court in multiple judgments, many government entities continue to drag their feet on arbitration award payouts to the detriment of shareholder interest," the Chairman said.
RInfra, the operator of the Mumbai Metro, has bagged the contract this year for the Versova-Bandra Sea Link project, which the Chairman described as "the largest urban infrastructure project in the country and represents our deep commitment to the city and people of Mumbai".
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“Full prepared..going to win,” Congress MP KC Venugopal ahead of Kerala polls
EC not functioning as a neutral institution: Venugopal
Congress MP K. C. Venugopal on Monday raised concerns over the election schedule announced by the Election Commission of India for the upcoming Kerala Assembly election, questioning the timing of the poll dates and alleging that the schedule leaves limited time for campaigning.
Speaking to news agency ANI in Delhi after the poll panel announced elections in five states and Union Territories, Venugopal said that the Congress and the United Democratic Front (UDF) are fully prepared for the elections and confident of victory. At the same time, he questioned the pattern of dates announced by the Election Commission.
“We are fully prepared, we are going to win the elections... You can see how the Election Commission has set the dates. The first phase of elections is on the 9th, nominations are due until the 23rd, scrutiny is on the 24th, nominations can be withdrawn until the 26th, and after that, there are 11 days for campaigning,” he said.
“As for Kerala, there is Easter and Good Friday in the first week...The Election Commission could have announced the dates earlier... The counting date is on May 4th, so what was the point of holding elections in Kerala so early? What is their intention behind holding elections on the same day in Kerala, Puducherry, and Assam?... We are confident that we will win, but the people of the country are seeing the biased attitude of the Election Commission...,” he added.
He further stated that his party was ready for elections irrespective of the dates announced by the poll body.
“We are going to win the election. India's strategy has been set up. And we are all ready for winning this election. But one thing as far as declaring election, even though they are giving only for five days, we are going to win the election. We have no problem,” he said.
Detailing the poll schedule while questioning the time available for campaigning, he stated, “but you can see the pattern of date which the election commission announced. Yesterday they declared election, and today they notified us. The first phase of election on April 9th, filing of nomination will be over on the 23rd of this month, 24th scrutiny, 26th withdrawal of nomination. After 26, four plus seven, 11 days campaign.”
“As far as Kerala is concerned, April first week is a holy week. The holiday week means, Good Friday is there. Nobody will do anything on Good Friday. Easter is the big festival. These festivals are natural, you have to see that. Among the 11 days, working days, two, three days will go for holidays. Then hardly seven, eight days for campaigning in this election for candidates,” the Congress MP questioned.
The Congress leader said the Election Commission could have announced the dates earlier if there was a need for an early election schedule.
Questioning the urgency behind placing Kerala in the first phase of polling, he added that the counting date is much later.
“Which is the date of counting? Fourth May. Then what is the urgency of putting Kerala in the first phase without giving sufficient time for candidates? And putting Kerala, Puducherry, Assam together, what is the intention behind that?” Venugopal questioned.
He also alleged that the Election Commission was not functioning as a neutral institution.
“The Election commission is completely losing that capacity as a neutral player. You can see 14 of our prime minister's programs over and on the 15th they announce the election, 16th notification comes,” he said.
Venugopal further stated that such tactics would not affect the Congress’ prospects in the election.
“They think that this type of techniques and tactics, because of these techniques and tactics, UDF is going to lose, and Congress is going to lose. This is their complete dream only. This is not going to happen. We are very much confident at any cost, whether they are not giving any time also, we are going to win the election,” he said.
“But the people of India are watching this. The tricks of the election commission. To restrict the campaign, people of India are watching. This I want to bring into the notice of the nation. That's all,” Venugopal said.
The Election Commission of India on Sunday announced the schedule for the Kerala Assembly election. Polling in the state will be held in a single phase on April 9 while the counting of votes is scheduled to take place on May 4.
