Reliance Jio Infocomm Ltd is merging its two subsidiaries, Infotel Telecom Ltd and Rancore Technologies, with itself.

The move is aimed at bringing all its telecom related operations under a single entity before launching services.

While Reliance Jio has a unified licence, Infotel Telecom has long-distance telephony licences. Rancore is an R&D unit.

Infotel Telecom, which is already registered with the Registrar of Companies, had earlier received the company court’s approval for the merger. Now, it has sought the Department of Telecommunications’ approval for the amalgamation, while the licensor is yet to issue written consent, sources close to the development told BusinessLine .

The merger will enable Reliance Jio to conduct national and international long-distance business under a single licence.

The effective date for the Infotel Telecom merger is September 1, 2014, while the approval is pending as Reliance Jio has not submitted details of the minimum paid-up capital of the company and minimum net-worth details of the companies.

According to sources, the DoT has asked for certain details, including certificates detailing Indian and foreign equity held in the company and details of minimum paid-up capital.

The DoT has also suggested that the Telecom Ministry’s wireless planning & coordination (WPC) wing also look into the proposal as Reliance Jio holds 20 MHz of Broadband and Wireless Access spectrum across all the 22 circles.

Mumbai-based Reliance Jio, controlled by industrialist Mukesh Ambani, had also sought a similar approval to merge Rancore Technologies with itself.

The company, which holds 1800 MHz spectrum across 14 circles and 2300 MHz in 22 circles, is gearing up to launch fourth-generation wireless services in 2015.

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