Adani Power Ltd.'s wholly owned subsidiary Mahan Energen Ltd. on Tuesday announced that it has entered into a 20-year power purchase agreement for 500 MW with Reliance Industries Ltd.
RIL has acquired 26% stake in a 600 MW unit of Mahan Energen's thermal power plant. This unit, part of MEL's total capacity of 2,800 MW, is designated as the captive unit for the agreement.
This allotment will enable RIL to source reliable power supply from the captive unit under the exclusive arrangement between the two corporates and demonstrate the advantage of this mutually beneficial arrangement by enhancing MEL's long-term revenue visibility.
Shares of Adani Power closed 4.26% higher at Rs 727.80 per share, as compared to a 0.46% advance in the NSE Nifty 50.
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