With over Rs 60,000 receivables stuck in regulatory and arbitration matters, Reliance Infrastructure 's Chairman Anil Ambani, on Monday, said that the Government should resolve this issue to kick-start investment.
"Resolving this gridlock should be the next focus of the government. This will dramatically improve large-scale investment and will have a huge multiplier effect on investment and growth," Ambani said while addressing shareholders of Reliance Infrastructure.
"The government has increasingly focused on the 'ease of doing business' and India’s rank has consistently improved during the last five years. However, reforms in the legal and regulatory front are still a matter of concern, where timelines of awards and certainty of resolution and arbitration awards are a matter of great concern for investors both domestic and global," he added.
Ambani said that in the last six months, Reliance Infrastructure has suffered collateral damage due to a combination of factors including the crisis in the financial services sector, irrational actions of auditors and rating agencies, and the now recognised slowdown of the Indian economy. "These events aided and abetted by reckless selling and rumour mongering by vested parties effected the general public psychology, especially share owners like you," Ambani said.
He said that Reliance Group has repaid over Rs. 35,000 crore in the 14 months till May 2019, and will be paying another Rs 15,000 crore till March 2020, aggregating to over Rs 50,000 crore through monetisation and cash flows to lenders.
Ambani said that over the last few years, Reliance Infrastructure has successfully transformed into a diverse fifteen-plus businesses which is currently into power distribution, transportation like highways, metro and airports, engineering and construction and defence.
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