The National Company Law Tribunal on Thursday approved the merger of Stratatech Mineral Resources Pvt, a wholly owned subsidiary of Adani Enterprises Ltd, with Mahan Energen Ltd. The latter is a subsidiary of Adani Power Ltd.
"There are no adverse observation in respect of the petitioner companies as well as in respect of the scheme...," the NCLT order said. It added, "After analysing the scheme in detail, this Tribunal is of the considered view that the Scheme as contemplated between the companies seems to be prima facie beneficial to the companies and will not be in any way detrimental to the interest of the shareholders of the companies."
The Adani Group's Mahan Energen in June agreed to merge the coal miner Stratatech Mineral Resources with itself as it seeks to improve its fuel security.
Stratatech Mineral Resources had been allocated the Dhirauli Coal Mine. The mine has a capacity to produce 6.5 million tonne per annum of coal.
Mahan Energen, following the amalgamation, will be able to operate the Dhirauli Coal Mine in Madhya Pradesh as a captive coal mine—located close to Mahan Energen's thermal power plant—and will provide the company with an alternative source of supply to supplement its existing coal sourcing contracts. This will also help the company improve its cost efficiency, the company said.
Mahan Energen has also proposed an expansion of its existing 1,200 power plant at Singrauli, Madhya Pradesh by addition of 1,600 MW.
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