Mukesh Ambani-Gautam Adani Partnership: Reliance industries' BIG stake in Adani Group company

The agreement between Reliance Industries and Adani Power Ltd allows Reliance to secure 500 MW of electricity from the project on a long-term basis. The specific project involved in this deal is a thermal power plant with a total capacity of 2800 MW. Out of this capacity, 600 MW will be designated for Reliance's captive use.

Mukesh Ambani's company, Reliance Industries, has invested in Gautam Adani's power project in Madhya Pradesh. Reliance Industries acquired a 26% ownership in Mahan Energen Ltd (MEL), which is a part of Adani Power Ltd (APL) at the cost of Rs 50 crore. Reliance is looking to get electricity from this project for its own use.

"...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," Adani Power said in the BSE filing.

The specific project involved in this deal is a thermal power plant with a total capacity of 2800 MW. Out of this capacity, 600 MW will be designated for Reliance's captive use, as per the regulations. This move is in line with the Captive User policy defined under the Electricity Rules, 2005.

The agreement between Reliance Industries and Adani Power Ltd allows Reliance to secure 500 MW of electricity from the project on a long-term basis. This strategic partnership underscores how large corporations collaborate to ensure a stable and sufficient supply of electricity for their operational needs.

The stock price of Adani Power Ltd (ADANIPOWER) experienced a notable increase of 3.32%, closing at Rs. 533.70 apiece as of March 28. Adani Power has a market cap of Rs 2.05 lakh crore as per BSE. The counter opened at Rs 521.95 apiece on March 28 against the previous day close of Rs 516.55 apiece. The counter reached a high of Rs 538.50 apiece and touched a low of Rs 519.55 apiece during the session