Anil Ambani to Draw No Salary or Commision from Reliance Communications in Current Financial Year

Reliance Communications (RCom) has been under immense pressure due to ongoing events in the Indian telecom sector. The telecom operator led by Anil Ambani is not able to match the current low-cost tariffs scenario created by Reliance Jio in the market, followed by the India’s top three telecom operators and state-run operator BSNL.

Anil Ambani-Reliance-communications

Anil Ambani

The new development in the company is that the Chairman of Reliance Group- Anil Ambani has ‘voluntarily’ decided to draw no salary or commission from RCom in the current financial year- FY 2018“. The decision is part of company promoters’ commitment to strategic transformation program,” RCom said in an official statement today.

Furthermore, RCom management also stepped up and followed their Chairman’s lead to ensure a time-bound execution. The management team is on the board to defer the personal pay by up to 21 days.

The company further stated in the press release that “Aircel, Brookfield deals targeted to close by 30 September 2017, subject to approvals; will reduce debt by nearly 60 percent or Rs 25,000 crore. ” The new measures will remain in place until December 2017.

Earlier this month, the telco said that it has formally advised all its lenders that it will be making the repayment of an aggregate amount of Rs. 25,000 crore from the proceeds of Aircel and Brookfield transactions. “The said amount will cover not only all scheduled repayments but also include substantial prepayments to all lenders on a pro-rata basis,” said RCom at the start of this month.

RCom also said that it will close the ongoing process of merging its mobile business with Aircel and the sale of tower assets to Brookfield in the next four months. The telco reportedly said that these transactions would help it to bring down its debt substantially from Rs. 36,726 crore (as of March 31).

The telco had already stated that the combined RCom-Aircel entity would enjoy substantial benefits of scale, and CAPEX and OPEX synergies with an estimated NPV of Rs. 20,000 crore. As part of this transaction, RCom’s overall debt will reduce by Rs 14,000 crore, together with the transfer of liability for spectrum instalments of an additional approx. Rs. 6,000 crore.

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26 Comments on "Anil Ambani to Draw No Salary or Commision from Reliance Communications in Current Financial Year"

 

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Kaushik
June 16, 2017 8:04 pm 8:04 PM
Dear users, moderators and admins of TT, I am finding a certain person from WB has taken to attacking me on every thread and post here on TT only because I believe RCom is better than ?? believes. He continues to carry this fight across the forums and continues to launch personal attacks on me. If you all go through my post history, there is no one operator I am constantly shilling for. Where there was praise to be given, I gave. I gave praise to vodafone for voice QUALITY, IDEA for good plans, airtel for its broadband and data… Read more »
xyz
June 15, 2017 12:43 pm 12:43 PM

gud rcom is going down…they cheated me a lot during cdma to 4g migration….will nvr take postpaid plan of any company now ……anyway what will be jio new offer after DDD …anyone has any news abt this?

Prince Suri
June 15, 2017 10:48 am 10:48 AM

Company is not in condition to give salary to his own employee .. No matters Anil do not take the salary / commission .After all he is the owner of Business who will gain profit in future but others salary matters…

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