Reliance Indinvests Rs 50 cr in Adani Power arm

NEW DELHI: An investment agreement has been entered into among Mahan Energen Limited (MEL), a wholly owned subsidiary of Adani Power Limited (APL), Reliance Industries Limited (RIL) and APL, in terms of which RIL has agreed to subscribe and MEL has agreed to allot 5 crore equity shares with face value of Rs 10 each to RIL at par.

RIL, in a filing, said the proposed investment is in compliance with the provisions of Electricity Rules, 2005 in terms of which the company, as a captive user, is required to own 26 per cent proportionate ownership in one unit of MEL of 600 MW capacity, with RIL being the captive user of 500 MW generation capacity. RIL and MEL have entered into a 20-year long term power purchase agreement for this purpose, RIL said.