NEW DELHI: In a first, rival billionaires Mukesh Ambani and Gautam Adani have joined hands for a business deal as Reliance Industries Limited (RIL) acquired a 26% stake in Mahan Energen Ltd (MEL), a wholly owned subsidiary of Adani Power Ltd.
The deal will give RIL 500 MW of electricity from MEL’s Madhya Pradesh-based power plants for captive use. “One unit of 600 MW capacity of MEL’s Mahan thermal power plant, out of its aggregate operating and upcoming capacity of 2,800 MW, will be designated as the Captive Unit for this purpose,” Adani Power said in an exchange filing. It added that RIL will pick up 5 crore shares with a face value of `10 (`50 crore).
RIL said the investment is in compliance with the provisions of the Electricity Rules, 2005, which say a captive user must own a 26% stake in the captive unit.
Ambani’s interests span oil and gas to retail and telecom while Adani’s focus is on infrastructure spanning sea ports to airports, coal and mining. Though considered business rivals, the two Gujarat industrialists have rarely crossed each other’s path except in the clean energy business, where the two have announced multi-billion investments.
Adani aspires to be the world’s largest renewable energy producer by 2030, while Reliance is building four gigafactories in Jamnagar — one each for solar panels, batteries, green hydrogen, and fuel cells. Adani is also building three gigafactories for manufacturing solar modules, wind turbines, and hydrogen electrolysers.