RIL ready to resolve issues with ADAG
Mumbai, Mar 3: The Mukesh Ambani-controlled Reliance Industries has reiterated its commitment to supporting the companies carved out of RIL and now controlled by younger brother Anil Ambani evenwhile denying the charge it has reneged from cash commitment and import of capital goods by Reliance Communication Ventures Ltd (RCoVL).
The assurance has come in the wake accusation by RCoVL that RIL was yet to fullfill its promise of providing Rs 3,100 crore in cash and in supporting in import of capital goods of Rs 10,000 crore by the Anil Ambani-controlled company.
RIL sources said of the total commitment of Rs 3,100 crore it has already made cash payment of Rs 372.08 crore and the balance was paid in the form of deep discount bonds of Reliance Communication Infrastructure Ltd, a group company of RCoVL, earlier held by RIL.
The sources told UNI that RIL had already given a guarantee of equipment imports worth Rs 10,000 crore to the State-owned Export Credit and Guarantee Council (ECGC).
RCoVL, slated for listing on BSE and NSE on Monday, in an information memorandum filed with the stock exchanges, said transfer of only Rs 372.08 crore in cash and Rs 2,727.92 crore of deep discount bonds without informing the representative of the Anil Ambani has '' reduced the financial flexibility of the company.'' The reconstituted board of RCoVL has decided to take ''appropriate action'' to restore the position as agreed to earlier, the memorandum said.
To this, RIL sources said, ''it is committed to the agreement signed at the time of separation between the two brothers.'' RCoVL said as per the agreed position, RIL has to continue support the company and its affiliates such as Reliance Infocomm in the shape of export obligations against import of goods and services of up to Rs 10,000 crore during April 1, 2005, to March 31, 2007.
''RIL has not yet executed any agreement in connection with this obligation. The reconstituted board has decided to take appropriate steps to enter into appropriate agreements with RIL in line with the agreed position to protect the interests of the company and its shareholders,'' RCoVL said.