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Adani Power informed that its wholly owned subsidiary, Mahan Energen (MEL) had entered into a 20-year long-term power purchase agreement for 500 MW with RIL.
RIL has subscribed to, and MEL has issued and allotted to it 5 crore equity shares with face value of Rs 10 each, translating to 26% proportionate ownership stake in the unit. This unit, part of MEL's total capacity of 2,800 MW, is designated as the captive unit for the agreement.
This allotment will enable RIL to source reliable power supply from the captive unit under the exclusive arrangement between the two corporates and demonstrate the advantage of this mutually beneficial arrangement by enhancing MEL’s long-term revenue visibility, stated Adani Power in an exchange filing.
Consequent to this issuance, MEL has now ceased to be a wholly owned subsidiary of Adani Power.
Adani Power, a part of the diversified Adani Group, is the largest private thermal power producer in India. The company has an installed thermal power capacity of 15,210 MW spread across eight power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, and Jharkhand, apart from a 40 MW solar power plant in Gujarat.
Reliance Industries (RIL) is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, renewables (solar and hydrogen), retail and digital services.
Shares of RIL shed 0.79% to Rs 3,155 and Adani Power declined 0.10% to Rs 724.60 on the BSE.
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