Burdened with high debt,Anil Ambani,chairman Reliance Communications announced that he hopes to complete the sale of the tower business in 2013 post spectrum auction and bring down the overall debt of the company in the financial year 2014.
Speaking in Mumbai,at back-to-back annual general meetings of four companies Reliance Capital,Reliance Communication,Reliance Power and Reliance Infrastructure Ambani said that his target is to bring down the debt to EBITDA level at 3 or less by financial year 2015.
Ambani announced a special dividend for shareholders of Reliance Capital as the financial services arm of the group completes 25 years. The special dividend will be considered at the board meeting on September 10. Shares of Reliance Capital gained 3.3 per cent after the announcement.
The company also reiterated that it has got adequate funds for entry into new ventures such as the banking space and also to reduce its consolidated debt.
Addressing shareholders of Reliance Power,Ambani called for a hike in tariff structure for business viability.
Power tariffs will have to go up reflecting the reality of the prices of fuel, said Ambani. It is necessary to ensure that generation companies are paid their rates if the power sector is to remain healthy. Ambani asked for a concrete strategy to tackle fuel shortage and cumbersome clearance process faced by the power sector.