- By Aditya Pratap Singh
- Fri, 29 Mar 2024 01:37 PM (IST)
- Source:JND
Ambani-Adani Power Partnership: In a first collabration, Mukesh Ambani's Reliance Industries has purchased a 26 percent stake in Gautam Adani's Madhya Pradesh Power Project, signing an agreement for captive use of 500 MW of the plants' electricity. Mukesh Ambani's group will purchase 5 crore equity shares in Mahan Energy Limited, a company fully owned by Adani Power Limited.
As per the agreement, a 600 MW capability unit from MEL's Mahan Thermal Power Plant, with a complete working and upcoming capability of 2800 MW, will be appointed as a captive unit for this objective.
Adani Power in an official declaration said that Mahan Energy Limited ("MEL"), a wholly owned subsidiary of Adani Power Limited has entered into an Power Purchase Agreement with Reliance for 20 years.
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A 600 MW capability unit of MEL's Mahan Thermal Power Plant, out of its whole working and upcoming capability of 2800 MW, will be designated as a captive unit for this objective. In order to avail captive user policy benefits, RIL will hold 26% ownership stake in the captive unit in accordance with the full capacity of the energy plant. The company will invest Rs 50 crore for proportionate ownership shares, out of 5,00,00,000 equity shares of MEL.
To take benefit of this coverage, Adani Power additional that RIL must have a 26% ownership stake in the captive unit in proportion to the complete capability of the energy plant. It will accordingly invest in 5,00,00,000 equity shares of MEL, amounting to Rs. 50 crores for proportionate ownership shares.
The deal essentially brings in a separate arrangement for the acquisition of 500 MW of energy by Reliance Industries on a long-term foundation from Adani Power.
