Reliance Communications (RCom) and Reliance Jio Infocomm have decided to extend the validity of the agreements signed via them with regards to sale of assets of the former to the latter until June 28, 2019.
“RCom and Reliance Jio Infocomm have improved the validity of the agreements signed on 28th December 2017 for sale of towers, fiber, MCNs and spectrum of RCom and its associates to 28th of June 2019,” RCom mentioned in a stock exchange filing on Monday.
The extension comes in the backdrop of the department of Telecommunications (DoT) reportedly maintaining its stand to not clear the deal till there is clarity on the payment of dues in the case of spectrum and other expenses recoverable from RCom.
Following a contemporary Supreme court order, Anil Ambani-owned RCom offered a corporate assurance of Rs 1,400 crore to DoT towards the corporation’s dues of Rs 2,900 crore with regards to spectrum. However, Mukesh Ambani-led Jio reportedly told DoT that it’ll no longer take any liability of RCom’s debt.
DoT has maintained that due to the fact that Jio is just not equipped to take liability of RCom’s spectrum debt, it can’t let the deal go through. RCom has a total debt of round Rs 46,000 crore. To repay part of its debt, RCom final 12 months signed a handle Jio to promote its assets including wi-fi spectrum, towers, optical fibre and media convergence nodes. As of now, the sale of fibre optical property and media convergence nodes have been accomplished with Jio paying Rs 5,000 crore in whole to RCom.
The spectrum trading might fetch RCom around Rs 975 crore of which it has promised to pay Ericsson Rs 550 crore and Rs 230 crore to settle other dues.