InvestorQ : Is it true that Reliance Infra will become zero debt by this year as the company has been claiming?
Anjana Aiyar made post

Is it true that Reliance Infra will become zero debt by this year as the company has been claiming?

Answer
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Arya Nanda answered.
3 months ago


Anil Ambani has confirmed that Reliance Infra will be completely debt-free by end of fiscal 2021. It currently sits on a debt pile of over Rs.6000 crore and has been trying hard to monetize its assets to reduce its debt. In 2018, the energy business was sold to Adani Transmission for Rs.18,800 crore, reducing its debt to Rs.7500 crore.

This year, the NHAI has approved the sale of its Delhi-Agra toll road to Cube Highways and Infrastructure of Singapore for Rs.3600 crore. One of the worries for Reliance Infra has been that nearly Rs.60,000 crore of receivables are stuck in regulatory and arbitration issues and that has created cash flow problems for the company.

Post the lockdown, the company averred that EPC projects were fully operational with over 5000 employees on sites. Toll road collections are expected to touch 100% levels in the next couple of weeks. RINFRA has a defence JV with Dassault of France and that has also been fully operational.