Reliance Infrastructure Limited will receive a sum of Rs 7100 cr from Delhi Metro Rail Corporation Limited (DMRC) which will be used to repay Reliance Infrastructure’s debts and free the company from debt, Chairman Anil Ambani said during an annual meeting on Tuesday General meeting (general meeting) of the company.
Delhi Airport Metro Express Private Limited (DAMEPL), which operated the Delhi Airport Metro Line Reliance Infrastructure, is a branch of Reliance Infrastructure.
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Reliance Infrastructure won against the DMRC when the Supreme Court (SC) upheld an arbitration award in favor of DAMEPL, the chairman said.
There are Rs 50,000 Cr regulatory assets being approved / challenged in front of various forums for the power distribution business – BSES Delhi and the former GTD in Mumbai.
During the last RInfra general meeting, Anil Ambani announced that the promoters would increase their stake in the company. The Preferential Issue of over Rs 550 cr comprised of 8.88 cr warrants of Rs 62 each that can be converted into equity to increase the promoter’s stake to 22.06 percent.
Power of trust – Reliance Infra and other promoters increased their stake by converting Rs 1325 crore to ICD. The current share is 24.98 percent, the share should increase to 38 percent when warrants are converted.
Last year Reliance Infra successfully completed:
A. 100 percent sale of Delhi Agra Toll Road to Cube Highways and Infrastructure III pte Ltd for Rs 3600 cr.
B. Sale of the entire 74 percent stake in Parbati Koldam Transmission Company Limited to India Grid Trust for an enterprise value of Rs 900 cr.
C. Sale of the commercial property in Santacruz as part of a combined transaction to sell, buy back and lease the property.
These transactions resulted in a 35 percent reduction in debt.
Reliance Infra’s new growth engines will be:
A. The electricity distribution business as a new electricity law opens up many opportunities
B. New contracts in EPC business and
C. Manufacture of armaments
On September 9, 2021, the Anil Ambani Group took a long break from the Supreme Court of India. The top court in its ruling gave the arbitration tribunal of Rs 2,800 cr in favor of the company. In its ruling, the Supreme Court upheld the 2017 arbitration award in favor of Reliance Infra.
The arbitration was previously challenged in the Delhi High Court. The SC has also decided that this amount of Rs 2,800 cr will be repaid to the company with interest accrued over a period of 8 years.
The issue is related to a lawsuit that arose out of Reliance Infra’s cessation of operations in 2012. The company ceased operations on the subway line that connects Delhi Airport. The reasons given by the company were that the structures built by DMRC had developed cracks and that it was not possible to use the metro on this route for safety reasons.
However, DMRC had denied Reliance Infra’s claims. Reliance Infra had accused DMRC of not having repaired the faulty structures and said it would not continue operations.
This case later entered the arbitration. It then went to the Delhi High Court, where a single judge’s bench ruled in favor of Reliance Infrastructure. It was later challenged in the Supreme Court’s dual judges bench, which ruled against the company.
Finally it went to SC, which today decided in favor of Reliance Infra.
