Mahan Energen Ltd inks PPA with RIL for 500 MW

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

One unit of 600 MW capacity of MEL’s Mahan thermal power plant, out of its aggregate operating and upcoming capacity of 2800 MW, will be designated as the Captive Unit for this purpose.

In order to avail the benefit of this policy, RIL has to hold a 26% ownership stake in the Captive Unit in proportion to the total capacity of the power plant. It will accordingly invest in 5,00,00,000 equity shares of MEL, aggregating to Rs. 50 crore for the proportionate ownership stake.

This development brings between two corporates an exclusive arrangement for 500 MW of power purchase by Reliance Industries on long term basis.

In this connection, APL, MEL, and RIL have signed an Investment Agreement on 27th March 2024 at 7:00 pm. Closing of the transaction is subject to customary closing conditions including receipt of requisite approvals.

Shares of Adani Power Limited was last trading in BSE at Rs. 533.70 as compared to the previous close of Rs. 516.55. The total number of shares traded during the day was 403611 in over 11788 trades.

The stock hit an intraday high of Rs. 538.50 and intraday low of 519.55. The net turnover during the day was Rs. 213060228.00.

Source : Equity Bulls

Keywords

AdaniPower INE814H01011 MahanEnergen PPA RelianceIndustries 500MW