Adani Power Ltd.'s wholly owned subsidiary, Mahan Energen Ltd., entered into a 20-year long-term power purchase agreement for 500 megawatts with Reliance Industries Ltd.
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, Adani Power said in an exchange filing on Wednesday.
RIL will hold a 26% ownership stake in the captive unit in proportion to the total capacity of the power plant and will invest in 5 crore equity shares of MEL for Rs 50 crore for proportionate ownership stake.
"This development brings between two corporates an exclusive arrangement for 500 MW of power purchase by Reliance Industries on a long-term basis," the statement said.
The investment is subject to customary conditions and is expected to be completed within two weeks of receipt of completion of the required conditions, RIL said in a statement.
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