Tuesday, 28 May, 2024

Business

Indian billionaires Ambani and Adani collaborate for first time

Business Desk | banglanews24.com
Update: 2024-03-29 15:05:44
Indian billionaires Ambani and Adani collaborate for first time

In a groundbreaking move, Mukesh Ambani and Gautam Adani, two of India's billionaires, have entered into their first-ever collaboration for a power project in Madhya Pradesh.

According to a PTI report, Reliance Industries, Ambani's conglomerate, has acquired a 26 per cent stake in Adani Power's project in Madhya Pradesh, signaling a major collaboration.

Reliance will secure 5 crore equity shares in Mahan Energen Ltd, a subsidiary of Adani Power Ltd, with a face value of Rs10 each at par (totaling Rs 50 million). The agreement involves the utilisation of 500 MW of electricity generated by the plant for captive use by Reliance.

Adani Power stated in a filing that Mahan Energen Ltd has inked a 20-year long-term power purchase agreement (PPA) with Reliance Industries Ltd (RIL) for 500 MW, in accordance with the captive user policy outlined in the Electricity Rules, 2005.

As per the policy, Reliance must hold a 26 per cent ownership stake in the captive unit relative to the total capacity of the power plant, necessitating its investment in Mahan Energen Ltd.

This collaboration marks a significant departure for Ambani and Adani, whose business interests have traditionally diverged across various sectors, from oil and gas to retail, telecom, infrastructure, and clean energy. However, both conglomerates are now venturing into the renewable energy sector with substantial investments in solar manufacturing and green hydrogen production.

While Adani Enterprises aims to commercialise green hydrogen and its derivatives, Reliance Industries plans to utilize its production for internal consumption, reflecting a strategic alignment between the two conglomerates in the pursuit of sustainable energy solutions.

Source Gulf News

BDST: 1505 HRS, MAR 29, 2024
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