According to a senior company official, Reliance Communications is still holding discussions with potential investors to sell its telecom tower unit even there are uncertainties over the regulatory framework in the industry.

India's second-biggest mobile phone carrier by subscribers said that the deal will come through only when the authorities clarify the rules. Punit Garg, president at Reliance Communications did not disclose the name of the parties with which the company is holding discussions in a conference call with analysts to announce the company’s quarterly results.

According to some reports, Private equity firms Blackstone and Carlyle, which were believed to be in the final stages of discussions to acquire the unit, have now cancelled the deal. Reliance Communications is aiming to sell the 95% stake in its Reliance Infratel tower unit.

Anil Ambani-led Reliance Communications has been trying to reduce debts by raising funds through sale of assets. The company had recorded a debt of $7 billion as of March 2012. Reliance Infratel, which has around 50,000 towers, will now engage in a fresh round of discussions with investors.

Blackstone and Carlyle have not commented on the matter and Reliance Communications spokesperson only said that the company is holding discussions for the sale.