Time running out for Reliance Communications

With operations facing tough competition, firm has to expedite debt reduction

Reliance Communications (RCom) is staring at a tough future as its multi-stage debt reduction plan has hit a hurdle. The key to reducing its Rs 45,000-crore debt was the alliance with Aircel, which involved the merger of their mobile businesses, and second, the tower deal. While the merger included transfer of Rs 14,000 crore of RCom's debt to the new entity, the tower deal would have fetched Rs 11,000 crore (for 51 per cent stake), collectively knocking off Rs 25,000 crore of debt.

The merger is clearly not happening, points out RCom's press release, due to "inordinate delays caused