Mahan Energen Limited (“MEL”), a wholly owned subsidiary of Adani Power Limited (“APL” or the “Company”), has recently finalized a 20-year Power Purchase Agreement (“PPA”) for 500 MW with Reliance Industries Limited (“RIL”) under the Captive User policy outlined in the Electricity Rules, 2005.

Under this agreement, one unit with a capacity of 600 MW from MEL’s Mahan thermal power plant, part of its total operating and upcoming capacity of 2800 MW, will be designated as the Captive Unit.

To comply with the policy’s requirements, RIL will acquire a 26% ownership stake in the Captive Unit, corresponding to the total capacity of the power plant. This will entail an investment in 5,00,00,000 equity shares of MEL, totaling Rs. 50 crore, to secure the proportional ownership stake.

This collaboration establishes an exclusive arrangement between two corporate entities for the long-term purchase of 500 MW of power by Reliance Industries.

In light of this development, APL, MEL, and RIL executed an Investment Agreement on March 27, 2024, at 7:00 pm. The completion of the transaction is contingent upon customary closing conditions, including obtaining necessary approvals.


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