What makes Mukesh Ambani and Gautam Adani: Powerful Collaboration
Mukesh Ambani and Gautam Adani have joined forces for a significant power project in Madhya Pradesh, marking their first collaboration.
Ambani’s company, Reliance, has acquired a 26 percent stake in Adani Power’s project in MP. The agreement entails the use of 500 MW of electricity from the plant for captive consumption.
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Reliance will acquire 5 crore equity shares in Mahan Energen Ltd, a subsidiary of Adani Power Ltd, at a face value of ₹10 each. This investment amounts to ₹50 crore and will allow Reliance to utilize 500 MW of power generation capacity for captive purposes.
Both companies have confirmed this development through separate filings with the stock exchange.
Adani Power stated in its filing that Mahan Energen Ltd has entered into a 20-year power purchase agreement with Reliance Industries Ltd for 500 MW under the captive user policy defined in the Electricity Rules, 2005.
To comply with this policy, Reliance must hold a 26 percent ownership stake in the captive unit in proportion to the total power plant capacity. Therefore, Reliance will invest in 5 crore equity shares of Mahan Energen Ltd.
Despite being business rivals, Ambani and Adani have come together for this venture, showcasing their commitment to the clean energy sector.
Adani aims to become the largest renewable energy producer globally, while Reliance is investing in Gigafactory’s for solar panels, batteries, green hydrogen, and fuel cells in Gujarat.
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Although both billionaires have diverse business interests, they have found common ground in the clean energy industry. Their collaboration in the power project signals a new era of cooperation between two of India’s most prominent businessmen.
