A week after the Supreme Court ruled in favour of Reliance Infrastructure Limited (RIL) in an arbitration case against the Delhi Metro Rail Corporation (DMRC), chairman Anil Ambani said the money received from DMRC will be used to repay debt.
Speaking at an annual general meeting (AGM) of the company, Ambani said Rs 7,100 crore, which the company would receive from the DMRC, will be used to make the company debt-free.
"As a result of SC judgement, Reliance Infra arm DAMEPL will receive a sum of Rs 7,100 crore from DMRC, that will be utilised to repay the debt of Reliance Infra and the company will become debt-free," said Ambani.
The company, at present, has a standalone debt of Rs 3,808 crore.
"There are regulatory assets worth Rs 50,000 crore under approval/dispute before various forums for power distribution business, BSES Delhi and erstwhile GTD in Mumbai... Arbitration claims pending before various forums amount to Rs 15,000 crore," he added.
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Ambani also told RIL shareholders that promoters have infused Rs 550 crore into the company "through a preferential issue of shares to increase their holding to 22.06 percent".
He said that as the electricity demand has bounced back to normal levels after being hit by the COVID-19 pandemic, RIL's new growth engine will be the power distribution business.
Earlier this month, the Supreme Court had dismissed a plea by the DMRC and upheld an arbitral award in favour of RIL. The SC order came while hearing a case related to a 2008 agreement between the DMRC and RIL for the construction and operation of the Delhi Airport Express Metro.
Last year, RIL completed a 100 percent stake sale of Delhi Agra Toll Road to Cube Highways and Infrastructure III Pte Ltd for Rs 3,600 crore.
Besides, RIL sold its entire 74 percent stake in Parbati Koldam Transmission Company Limited to India Grid Trust. The company also sold its commercial property at Santacruz. These sales reduced the company's debt by 35 percent.