In a surprising move, Bharatiya billionaires Mukesh Ambani and Gautam Adani, known for their fierce rivalry in the business world, have come together for their first-ever collaboration. The collaboration involves Ambani’s company, Reliance Industries, acquiring a 26 percent stake in Adani Power’s project in Madhya Pradesh, marking a significant step in their relationship.
Reliance Industries will acquire 5 crore equity shares in Mahan Energen Ltd, a subsidiary of Adani Power Ltd, for a total investment of ₹50 crore. This investment grants Reliance access to 500 MW of electricity generated by the power project for captive use. The agreement, signed for a duration of 20 years, allows Reliance to utilize the electricity under the captive user policy defined by the Electricity Rules, 2005.
Adani Power, in its company filing, affirmed the long-term power purchase agreement (PPA) between Mahan Energen Ltd and Reliance Industries. The filing highlighted the strategic importance of Reliance holding a 26 percent ownership stake in Mahan Energen Ltd to benefit from the captive user policy.
Ambani and Adani, both originating from Gujarat, have been formidable rivals in the Indian business landscape. Their competition has extended across various sectors, with both entrepreneurs vying for the title of Asia’s richest person. However, despite their rivalry, they have found common ground in the clean energy sector, where both have announced significant investments.
While Ambani’s interests span a diverse range of industries including oil and gas, retail, and telecom, Adani has focused on infrastructure development, particularly in sea ports, airports, coal, and mining. Despite their differing business focuses, both have recognized the importance of clean energy and have made substantial commitments to renewable energy projects.
Adani has previously expressed his company’s ambition to become the largest renewable energy producer globally. On the other hand, Ambani’s Reliance is spearheading the development of four gigafactories in Gujarat, dedicated to the production of solar panels, batteries, green hydrogen, and fuel cells. These initiatives underscore their shared commitment to sustainable energy solutions.
While Ambani and Adani have often found themselves at odds in the competitive business landscape, their collaboration for the power project in Madhya Pradesh signifies a departure from traditional rivalries towards mutual cooperation in the pursuit of clean energy goals. This partnership not only marks a significant milestone in their relationship but also underscores the growing importance of renewable energy in Bharat’s economic landscape.
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