Ambani-Adani strategic collaboration: Reliance Strikes Deal with Adani to Boost Power Supply

Reliance Industries (RIL) and Adani Power have joined hands in a rare collaboration, with RIL investing Rs 50 crore for a 26% stake in a 600MW unit of Mahan Energen’s thermal power plant. This marks a strategic move between two of India’s leading conglomerates.

As part of the agreement, RIL will purchase 50 million equity shares of Mahan Energen at par value of Rs 10 each. The investment is in compliance with electricity regulations, according to RIL.

Adani Power revealed that one unit of the Mahan thermal power plant, with a total capacity of 2,800 MW, will be designated as a captive unit for this collaboration with RIL.

The Adani Group is investing approximately Rs 30,000 crore to increase Mahan Energen’s power generation capacity to 4,400 MW over the next decade. Currently, Mahan Energen has a capacity of 1,200 MW and is located in Singrauli district, Madhya Pradesh.

Additionally, Adani Power announced the consolidation of short-term loan facilities worth Rs 19,700 crore into a single long-term debt, benefiting from a uniform tenure and reduced interest rates. This consolidation became possible after the credit rating of Adani Power was upgraded to AA, allowing for a consortium financing arrangement with eight lenders.

The collaboration between RIL and Adani Power marks a significant step in the Indian power sector, aiming to enhance power generation capacity and streamline debt management for sustainable growth.