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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Trump pauses Project Freedom, claims great progress for final agreement with Iran
Washington (PTI): President Donald Trump has suspended “Project Freedom,” to escort ships through the Strait of Hormuz, claiming progress in negotiations with Iran toward an agreement to end the war.
In a post on Truth Social on Tuesday, Trump said, “Great progress has been made toward a complete and final agreement with representatives of Iran.”
“Based on the request of Pakistan and other Countries, the tremendous Military Success that we have had during the Campaign against the Country of Iran and, additionally, the fact that Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran, we have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom (The Movement of Ships through the Strait of Hormuz) will be paused for a short period of time to see whether or not the Agreement can be finalized and signed," Trump said.
Project Freedom was launched on Monday to escort ships, stranded due to the closure of the Strait of Hormuz, out to safety. Trump had announced the operation on Sunday and the US Central Command began implementing it the next day.
However, the Project led to friction in the vicinity of the narrow seaway, a key route for transporting one-fifth of the global oil supplies, with the UAE claiming that its ships were attacked by Iran. The US also claimed to have destroyed several Iranian small boats.
Trump’s statement on Truth Social came hours after US Secretary of State Marco Rubio announced that Operation Epic Fury, launched on February 28, had concluded as its objectives have been achieved.
"Operation Epic Fury is concluded. We achieved the objectives of that operation. We're not cheering for an additional situation to occur. We would prefer the path of peace. What @POTUS would prefer is a deal... that is, so far, not the route that Iran has chosen," Rubio told a press conference at the White House on Tuesday.
On Project Freedom, Rubio said the goal was to rescue almost 23,000 civilians from 87 different countries who were trapped inside the Persian Gulf and left for dead by the Iranian regime.
"This is not an offensive operation. This is a defensive operation, and what that means is very simple: there’s no shooting unless we're shot at first. We’re not attacking them, but if they're attacking us or they’re attacking a ship, you need to respond to that," Rubio said.
