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Home Power

MEL Signs 500 MW PPA with RIL Under Captive User Policy

editor by editor
April 3, 2024
in Power
Reading Time: 1 min read
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Mahan Energen Limited
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Mahan Energen Limited (MEL), wholly owned subsidiary of Adani Power Limited, has entered into a 20-year long-term power purchase agreement (PPA) for 500 MW with Reliance Industries Limited (RIL), under the captive user policy.

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 for this purpose. In order to avail the benefit of this policy, RIL has to hold a 26 per cent ownership stake in the captive unit in proportion to the total capacity of the power plant. It will accordingly invest in 50 million equity shares of MEL, aggregating to Rs 500 million for the proportionate ownership stake.

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