Mukesh Ambani owns 26% of Gautam Adani’s Madhya Pradesh project as part of a power deal

Mumbai: Mukesh Ambani and Gautam Adani, two of the richest billionaires in the world and residents of the richest subcontinent, are inking a “power” pact. Ambani will acquire a minority interest in Adani’s power division, the businesses said on Thursday.

For Rs 50 crore, Ambani’s Reliance Industries will acquire a 26 percent stake in Mahan Energen, a fully owned subsidiary of Adani Power. The company would use the Madhya Pradesh plant to generate 500 megawatts of power for its needs.

Thanks to India’s electrical regulations, the two business entities have entered into a 20-year exclusive power agreement.
According to Adani Power, one unit of the Mahan thermal power plant’s 600 MW capacity would be classified as a captive unit in compliance with regulations.
To have access to regulations, RIL must purchase a strategic position.
Reliance Industries will need to spend and acquire a strategic 26% share in the captive subsidiary in order to profit from the regulations.
Reliance Industries withheld the location of its intended usage of Mahan Energen electricity. After obtaining all necessary regulatory permissions, the transaction is anticipated to be finalised in two weeks. Inside its petrochemical and oil refining complex in Gujarat, Reliance Industries already has its own captive power units.
The two Gujarati businesspeople are often seen as competitors by industry observers and are frequently shown competing on wealthy lists. On the other hand, each has based their empires on distinct industries.
Adani is mostly focused on infrastructure, which includes airports, seaports, and cement, while Ambani is more interested in oil and gas, retail, telecom, and financial services. With the exception of recent times in certain industries like media, renewable energy, and data centres, neither has often crossed paths.
Adani made its first significant media push two years ago when a company connected to Ambani offered the company shares in the news channel NDTV. He was put up against Ambani, the head of Network 18, one of the biggest media conglomerates in India, in the transaction. In an effort to reach zero net carbon emissions by 2050, the two businessmen have also promised multibillion-dollar investments in sustainable energy. Adani’s wife and kids joined him for the pre-wedding festivities of Anant, Ambani’s youngest son, earlier this month in Gujarat.
With a net worth of $117 billion, Ambani is the 11th wealthiest person in the world, according to Forbes. He assumed leadership of Reliance Industries after the deaths of his father and the company’s founder. Adani is ranked rather high on the list. Adani, a first-generation businessman who began with commodities trading, is ranked the 17th wealthiest person in the world by Forbes, with a net worth of $81 billion.