Reliance Industries makes investment in Mahan Energen, a subsidiary of Adani Power

New Delhi, March 28 (IANS) – An investment agreement has been made between Mahan Energen Limited (MEL), a subsidiary of Adani Power Limited (APL), and Reliance Industries Limited (RIL). RIL will subscribe to 5 crore equity shares of MEL at face value of Rs 10 each, in compliance with Electricity Rules, 2005.

RIL stated that the investment is in accordance with the requirements for owning a 26 per cent stake in a unit of MEL with a 600 MW capacity, making RIL the captive user of 500 MW generation. A 20-year long term power purchase agreement has been signed between RIL and MEL for this purpose.

MEL, which is involved in power generation and supply, was established on October 19, 2005. Its turnover for the financial years 2022-23, 2021-22, and 2020-21 was Rs 2,730.68 crore, Rs 1,393.59 crore, and Rs 692.03 crore respectively, as per audited standalone financial statements.

According to RIL, the investment is not a related party transaction and the company’s promoters or group companies do not have any interest in the investment. The completion of the investment is subject to customary conditions precedent and approvals by MEL, expected to be finalized within 2 weeks.

The collaboration between RIL and MEL signifies a significant move in the power sector, ensuring a strategic partnership for the generation and supply of electricity, paving the way for a sustainable and efficient power supply infrastructure in the country.