Chinese firm Citic Telecom is in discussions with Reliance Communications to buy a significant stake in its sub-marine cable business, Global Cloud Xchange, sources said.
"Reliance Communications have had discussions with various players. Citic is one of them. Whenever and with whomsoever the deal is crystallised, proceeds will be used to lower debt," an industry source said.
Sources said Reliance Communications has set a target to raise over Rs 6,000 crore from sale of Global Cloud Xchange (GCX), formerly Reliance Globalcomm business.
Reliance Communications' net debt was Rs 40,178 as on March 31, 2014, according to the financial results of the company.
When contacted, an RCom spokesperson said: "It is the policy of the company not to comment on speculation."
No comment could be obtained from Citic Telecom.
Citic Telecom provides cloud computing and telecom service solution to companies like MPLS, IT security etc which is in sync with GCX portfolio.
Reliance Communications has rebranded Reliance Globalcomm in March as Global Cloud Xchange.
GCX owns the world's largest private undersea cable system spanning 67,000 route kilometers which is seamlessly integrated with RCom's 2 lakh route kilometers of domestic optic fiber backbone and connecting 40 business markets worldwide.
GCX provides services to more than 230 countries and territories.
Reliance Communications was previously in talks with Bahrain Telecom (Batelco) and later with a PE funds consortium led by Samena Capital for selling stake in the subsea cable system but both the firms could not arrive at an agreement.