RIL Buys 26% Stake In Adani Power’s Unit For 50 Crore To Secure Captive Power – News18

Mukesh Ambani’s Reliance Industries (RIL) will purchase a 26 p.c stake in Mahan Energen Ltd (MEL), a unit of Adani Power led by Gautam Adani.

The Mukesh Ambani firm will make investments Rs 50 crore for a 26% stake in a 600MW unit of Mahan Energen’s thermal energy plant. The latter is a completely owned subsidiary of Gautam Adani-led Adani Power.

Mahan Energen has agreed to allot 50 million fairness shares of Rs 10 face worth every to RIL at par, Reliance stated in a regulatory submitting. “The proposed investment by the company is in compliance with the provisions of the Electricity Rules, 2005,” it stated. RIL didn’t disclose any particular goal for signing the facility buy settlement.

(*50*)“One unit of 600 MW capacity of Mahan thermal power plant, out of its aggregate operating and upcoming capacity of 2,800 MW, will be designated as the captive unit for this purpose,” Adani Power stated in a regulatory submitting saying the settlement with RIL.

MEL and RIL have entered a 20-yr energy-buy settlement.

The transaction between Adani Power and RIL is consistent with the captive person coverage as outlined below the Electricity Rules, 2005, each corporations stated.

The two teams signed an funding settlement on March 27. The transaction closure is topic to customary closing situations, together with receipt of requisite approvals.

MEL has an operational capability of 1,200 MW with plans so as to add one other 1,600 MW.

“The investment is subject to customary conditions precedent, including receipt of requisite approvals by MEL, and is expected to be completed within two weeks of receipt of completion of conditions precedent and receipt of such approvals by MEL,” RIL stated.

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