Reliance Industries Limited (RIL) has deepened its investment in the power sector by acquiring 5 crore Class ‘B’ equity shares of Mahan Energen Ltd (MEL), an Adani Power subsidiary, for ₹50 crore. This move follows RIL’s March announcement of acquiring a 26% stake in MEL’s 600-MW Mahan thermal power project in Madhya Pradesh.
The investment aligns with a 20-year power purchase agreement between RIL and MEL, securing electricity for RIL’s captive use. As per Electricity Rules, 2005, captive users must own at least 26% of the generating company.
This deal designates part of MEL’s 2,800 MW capacity as a captive unit for RIL. Class ‘B’ shares, typically held by promoters or senior management, carry higher voting rights than Class ‘A’ shares.
Following the share subscription, RIL’s stock experienced a slight dip in trading, falling around 1% to ₹3,126.3 on the NSE before recovering slightly to ₹3,149, down 0.99%, by midday trading on July 10.
This strategic move underscores RIL’s efforts to secure long-term power supplies for its operations while also marking a notable collaboration between two of India’s largest conglomerates in the energy sector.
