Ambani-Adani Collaboration: Reliance to acquire 26% stake in 600 MW Mahan Energen Unit

Ambani-Adani Strategic Collaboration :

Ambani-Adani Collaboration: Reliance to acquire 26% stake in 600 MW Mahan Energen Unit

Mukesh Ambani’s Reliance Industries has announced its acquisition 26% stake in the Madhya Pradesh Power Project of Mahan Energen’s thermal power plant. The latter is a wholly owned subsidiary of Gautam Adani’s Adani Power and signed a pact to use the plant’s 500 MW of electricity for captive use.

Mahan Energy has agreed to allot 50 Crores equity shares of Rupees 10 face value each to RIL at par. RIL and MEL have entered into a 20-year long-term power purchase agreement.

Reliance Industries said, “The proposed investment by the company complies with the provisions of the Electricity Rules, 2005”.

Adani Power said, “One unit of 600 MW capacity of Mahan Energen power plant, out of its aggregate operating and upcoming capacity of 2800 MW will be designated as the captive unit for this purpose”.

Mahan Energen:

Image Credit: MoneyControl

Mahan is located in Singrauli District, Madhya Pradesh. Mahan Energen, which was incorporated in 2005 has a total capacity of 1200 MW. The unit was formerly owned by Essar Power. Adani Power completed the acquisition for Rupees 4250 Crore in March last year after emerging as a successful bidder.

Mahan’s Turnover was 2730.68 crore in the year 2023.

Consolidating Debt:

In a separate regulatory announcement, Adani Power said it has consolidated different short-term loan facilities worth Rs 19700 Crore. The company said loan consolidation under a consortium financing arrangement comprising eight lenders became possible with the amalgamation of Six SPVs after the credit rating of Adani Power was enhanced to AA.

Reliance Industries :

Reliance Industries led by Mr. Mukesh Dhirubhai Ambani has made significant strides in The Power Sector. Through subsidiaries like Reliance Power, it has invested in diverse energy projects including thermal, solar, and wind power. Reliance aims to contribute to India’s energy security and sustainability by leveraging its expertise and resources in the power domain.

Adani Group:

Adani Group is a major player in India’s Power sector. It operates thermal, solar, and wind power projects across the country, contributing significantly to India’s energy landscape. With a focus on Sustainable Energy solutions, Adani Group continues to expand its presence in the renewable energy segment

Implication & Benefits :

By acquiring this stake, Reliance Industries aims to leverage Mahan Energen’s assets and expertise to further strengthen its foothold in the renewable Energy Market.

The partnership between Reliance Industries and Adani Power’s Subsidiary is poised to drive Innovation, Efficiency, and Sustainability in Energy Sector, fostering economic growth and environmental Stewardship.

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