Reliance Group has repaid more than ₹35,000 crore of debt over the last 14 months and is planning to repay another ₹15,000 crore in the next six months, said Anil Ambani, chairman of the group.
Assuring lenders of repayment through monetisation and cash flows, Mr. Ambani, during the company’s annual general meeting on Monday, said: “The government has increasingly focussed on the ease of doing business and India’s rank has consistently improved during last five years. The statement comes in the backdrop of the debt-laden Reliance Group having more than ₹60,000 crore receivables stuck in regulatory and arbitration matters.
“However reforms on the legal and regulatory front are still a matter of concern where timelines of awards and certainty of resolution and arbitration awards are a matter of great concern for investors, both domestic and global. Our group has over ₹60,000 crore receivables stuck in regulatory and arbitration matters which are pending for as much as 5-10 years.”
According to Mr. Ambani, resolving this gridlock should be the next focus of the government which will dramatically improve large scale investment and have multiplier effect on the investment and growth leading to Prime Minister Narendra Modi’s goal to take the Indian economy to $5 trillion.
In the last six months, Reliance Group firms have suffered collateral damage due to financial crisis, audit observations, ratings downgrade and slowdown of the Indian economy, he said.
‘Reckless selling’
“These events aided and abetted by reckless selling and rumour mongering by vested parties effected the general public psychology, especially share owners like you.
“Its unfortunate that during all this noise, the true value of our businesses has not been recognised [though it has] combined assets of over ₹2 lakh crore, net worth of over ₹30,000 crore and cash flow of ₹15,000 crore,” said Mr. Ambani.
