ndia’s two biggest businessmen, Reliance Jio owner Mukesh Ambani and Gautam Adani, have signed an agreement for their first collaboration for an unprecedented power project in Madhya Pradesh. This is a big deal, as it brings together the vast resources and expertise of both Reliance Industries and the Adani Group.
Mukesh Ambani and Gautam Adani Join Forces for Power Projects
Mukesh Ambani’s Reliance Industries has acquired a 26 per cent stake in Gautam Adani Adani Power’s power project. The assistance aims to increase the project’s capacity and utilize 500 MW of power for captive use. This strategic partnership is a departure from the usual business dynamics between the two billionaires, who have often been pitted against each other in different sectors.
Acquisition of stake: The company will acquire shares worth Rs 5 million in Mahan Energen Limited at a price of Rs 10 per share (total Rs 50 million). The investment guarantees Reliance a 26 per cent ownership stake in the captive unit proportionate to the power plant’s total capacity.
Long-Term Power Purchase Agreement: Mahan Energy Limited has announced a two-decade long-term power purchase agreement (PPA) with Reliance Industries.
5G spectrum auction
Now, the most important thing is that both the billionaires were expected to compete during the auction of 5G spectrum airwaves. Adani acquired a 400 MHz spectrum in the 26 GHz band, which is not for public networks and is away from Reliance’s attention.
