Friday, Sep 17, 2021
Outlook.com
Outlook.com

R-Infra To Get Rs 7,100 Crore from DMRC After Apex Court Ruling: Anil Ambani

He informed shareholders present at the Annual General Meeting (AGM) that the money accrued from DMRC would be used for debt repayment

R-Infra To Get Rs 7,100 Crore from DMRC After Apex Court Ruling: Anil Ambani
R-Infra To Get Rs 7,100 Crore from DMRC After Apex Court Ruling: Anil Ambani
outlookindia.com
2021-09-14T19:15:51+05:30

Delhi Metro Rail Corporation (DMRC) would be paying Reliance Infrastrucure Rs 7,100 crore following the Supreme Court ruling in favour of the company, Chairman Anil Ambani informed shareholders on Tuesday. Last week, the apex court had ruled in favour of Delhi Airport Metro Express Private Limited (DAMEPL), a Reliance Infrastructure (R-Infra) company.

Making the company debt-free

The money accrued from DMRC would be used for debt repayment. The company has a standalone debt of Rs 3,808 crore - the incoming payment would ensure that the company becomes completely debt-free, he said. 

The company has an additional Rs 15,000 crore of claims pending before various forums for the power distribution business, he said.

He added that it has regulatory assets worth Rs 50,000 crore under approval or dispute before various forums for the power distribution business.

Potential drivers of business

According to Ambani,  power distribution, new contracts in the engineering, procurement and construction business and defence manufacturing have been the company's new growth drivers. He said, promoters had infused Rs 550 crore into the company through a preferential issue of shares, this increased their holding to 22.06%

Demand for electricity is back to normal levels after suffering a blow due to COVID-19. He said the company was able to generate power despite the challenges arising from lockdowns induced due to COVID-19. According to him, India's power sector is struggling with low capacity utilisation of thermal plants, above targeted aggregate technical and commercial (AT&C) losses, lower tariffs as compared to the actual cost of supply, and creation of huge regulatory assets. A "regulatory logjam" is evident from the long pendency of a number of petitions/appeals, which do not reach finality even after 6-7 years of legal proceedings, he added. 

He added that RPower reduced debt Rs 3,100 crore during FY 2021 and expects it to further reduce it by another Rs 3,200 core in FY 2022. This would improve to equity ratio to 1:8:1, potentially the lowest in the sector. 

Advertisement

Outlook Newsletters

Advertisement

Read More from Outlook

PM Modi Turns 71, President, Ministers And Party Workers Extend Wishes

PM Modi Turns 71, President, Ministers And Party Workers Extend Wishes

Prime Minister Narendra Modi turned 71 on Friday. Congress leader Rahul Gandhi and others extended wishes while Health Minister called for vaccinations as "birthday gift".

India's Jaishankar Attends SCO, Discussions Revolved Around Taliban

India's Jaishankar Attends SCO, Discussions Revolved Around Taliban

External Affairs Minister S. Jaishankar attended the Shanghai Cooperation Organisation in person and also met with his counterparts to discuss bilateral developments. Prime Minister Modi to virtually participate today.

Why Moratorium On AGR Dues And Other Reforms Are Too Little, Too Late For Telecom Sector

Why Moratorium On AGR Dues And Other Reforms Are Too Little, Too Late For Telecom Sector

The real trouble for the telecom operators began when the government decided to price the 3G spectrum at a very high rate which eventually gave it a windfall gain of Rs 67,719 crore.

Rajasthan: Tourism Industry Hails Bill Making Misbehaviour With Tourists Non-Bailable Offence

Rajasthan: Tourism Industry Hails Bill Making Misbehaviour With Tourists Non-Bailable Offence

Tourism Department has taken action against 208 touts in 2018, 462 in 2019, 194 in 2020 and 102 in 2021. But since the crime wasn't cognisable, a complaint is filed in court and the accused is let off after paying a fine.

Advertisement