Business

Experts in the power sector commend collaboration between RIL and Adani Group for MP power project

In a significant development in India’s power sector, Reliance Industries Limited (RIL) has acquired a 26 per cent stake in Adani Group’s power plant in Madhya Pradesh. Experts have lauded this collaboration between two major industry players, stating that it marks a new chapter in the country’s energy landscape. The move comes at a crucial time with India aiming to add 500,000 MW of renewable energy capacity by 2030.

Under the partnership, RIL will invest in Mahan Energen, a subsidiary of Adani Power, for Rs 50 crore and procure 500 MW of electricity from the Madhya Pradesh plant. Additionally, a portion of the Mahan thermal power plant’s capacity will be designated as a captive unit according to regulations. The collaboration is seen as a boost for not only the entities involved but for the sector as a whole.

Former Power Secretary R.V. Shahi emphasized the significance of such collaborations, noting that the energy sector has seen remarkable growth since the enactment of the Electricity Act, 2003. With a focus on renewable energy, the sector is poised to achieve even greater milestones, contributing to India’s economic development goals. The collaboration between RIL and Adani Group is seen as a catalyst for further advancements in the industry.

Ashok Khurana, Director General of the Association of Power Producers, highlighted the role of liberalized captive power supply frameworks and streamlined licensing systems in facilitating collaborations like this. Jayant Deo, a former member of the Maharashtra Electricity Regulatory Commission, underscored the importance of top business houses joining forces in the energy sector for enhancing the country’s energy security.

Founder of the Independent Power Producers Association of India, Harry Dhaul, echoed similar sentiments, stating that collaborations such as these are crucial for the growth of the Indian power sector and strengthening energy security. The industry experts’ positive reactions showcase the potential of such partnerships in driving the sector towards greater efficiency and sustainability.

IANS

IANS, established in 1986, is India's largest independent news service, offering 24x7 news from India and South Asia, and a preferred source for diverse content across six business verticals.

Related Articles

This will close in 5 seconds