Jio asset transfer lightens RIL books

After selling its East-West gas pipeline to an infrastructure investment trust (InvIT) sponsored by Brookfield, Reliance Industries Ltd has used this instrument to shed the liabilities of telecom arm Reliance Jio by around Rs 1,07,000 crore.

InvITs are like mutual funds that pool in money from various entities to invest in infrastructure assets.

At present, there are 11 such registered trusts regulated by the Securities and Exchange Board of India (Sebi).

Jio had recently received the approval of the National Company Law Tribunal (NCLT) to demerge its fibre and tower assets into two separate units (SPVs).