|
Adani Power announced that Mahan Energen (MEL), wholly owned subsidiary of the company has entered into a 20-year long-term
Power Purchase Agreement (PPA) for 500 MW with Reliance Industries (RIL), under the Captive User policy as defined under the Electricity Rules, 2005.
One unit of 600 MW capacity of MEL's Mahan thermal power plant, out of its aggregate operating and upcoming capacity of 2800 MW, will be designated as the Captive Unit for this purpose.
In order to avail the benefit of this policy, RIL has to hold a 26% ownership stake in the Captive Unit in proportion to the total capacity of the power plant. It will accordingly invest in 5,00,00,000 equity shares of MEL, aggregating to Rs. 50 crore for the proportionate ownership stake.
This development brings between two corporates an exclusive arrangement for 500 MW of power purchase by Reliance Industries on long term basis.
In this connection, APL, MEL, and RIL have signed an Investment Agreement on 27 March 2024 at 7:00 pm. Closing of the transaction is subject to customary closing conditions including receipt of requisite approvals.
|