RIL picks up 26% stake in Adani’s power project

Reliance Industries, led by Mukesh Ambani, has acquired a 26% stake in Gautam Adani’s Mahan Energen Ltd (MEL), a subsidiary of Adani Power Ltd, as part of a deal to secure 500 MW of electricity for captive use. 

Reliance will invest Rs 500 million equity shares of MEL, at a face value of Rs 10 per share.

The agreement includes a 20-year Power Purchase Agreement (PPA) under the Captive User policy, with one unit of MEL’s Mahan thermal power plant, part of its 2,800 MW capacity, designated as the Captive Unit. 

This deal allows Reliance to use 500 MW of power, reinforcing a long-term exclusive arrangement for electricity purchase.