15 Jul 2024
The deal, announced in March, has now been completed. Reliance Industries has bought five crore shares of Adani Power subsidiary Mahan Energen for ₹50 crores.
Adani Power’s subsidiary Mahan Energen, established in 2005, runs a thermal power plant in Singrauli, Madhya Pradesh. Earlier, Essar Power owned this plant. Adani Power bought it for ₹4,250 crore in March 2022.
The Singrauli plant capacity will be raised from the existing 1200 MW to 2800 MW in the short term and to 4400 MW over the next decade. Adani is planning to invest ₹30,000 crore for this expansion.
Reliance Industries has signed a twenty-year power purchase agreement, picking up a 26% stake in this plant’s 500 MW unit for captive use. Captive use means that Reliance will consume the electricity instead of selling it to the power grid or consumers.
Adani aims to become the largest renewable energy producer in the world by 2030. Meanwhile, Reliance is readying four gigafactories at Jamnagar, Gujarat, one each for solar, green hydrogen, fuel cells, and batteries.