The NCLT has approved Jio’s purchase of Reliance Infratel

Reliance NCLT has given Jio the go-ahead to purchase Reliance Infratel Limited. Reliance Property and Projects Management Services Limited, the tower division of Jio, will buy Reliance Infratel Ltd. Jio asked the NCLT to expedite the acquisition’s approval procedure a few days ago out of concern for assets that would depreciate as a result of disputes amongst creditors. Jio had suggested funding the deal by placing Rs 3720 crore into an escrow account at the State Bank of India (SBI). Jio had asked to purchase the infrastructure-related assets of the insolvent Rcom return in 2019. The same has now received approval from NCLT.

43,450 mobile towers and approximately 1.78 lakh route kilometres of fiber-optic infrastructure are owned by Reliance Infratel in India. Jio will buy this as soon as the NCLT approves the relocation. Jio will deposit Rs 3500 crore in an SBI account, according to a report by ET Telecom. The creditors have not agreed upon how the money generated through the transaction would be allocated. Jio would have had to wait a lot longer for the consensus to form, which would have caused the assets’ value to decrease even more.

Since Jio is attempting to quickly roll out 5G SA (standalone) across the country, it will need the fiber and tower assets that Reliance Infratel Ltd held by 2023.