RCom Plans To Bring Down Debt To Rs 20,000 Crore In Next 24 Months

Reliance Communications, India’s second largest telecom operator, today said it is aiming to reduce its debt to below Rs 20,000 crore in the next 24 months. The company also plans to roll out 4G services by next fiscal.

While addressing the 10th annual general meeting of the company, Anil Ambani, Reliance group chairman, said, "We will participate in auctions next year and will be in a position to launch 4G services in 2015."

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."

For sustainable maintenance of its infrastructure, the company requires capex every year. "Rs 1,000- 1,500 crore is required as capex for sustainable maintenance as major investments are behind us," said Ambani.

The company is also contemplating on the option of 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," he concluded.
(Image: The Economic Times)