For the first time, agreement signed between Ambani and Adani, Reliance Group bought 26% stake in Adani Power project.

For the first time, agreement signed between Ambani and Adani, Reliance Group bought 26% stake in Adani Power project.

Ambani-Adani Update: Reliance Industries led by industrialist Mukesh Ambani has signed an agreement with its rival businessman Gautam Adani's company Adani Power. Reliance Industries has bought 26 percent stake in a power project in Madhya Pradesh. This is the first time that any kind of alliance has taken place between two leading billionaire industrialists. Reliance Industries has signed an agreement with Adani Power to use 500 MW of electricity generated from the power plant. 

In regulatory filings with stock exchanges, both the companies said that Reliance will purchase five crore equity shares of face value of Rs 10 each (Rs 50 crore) in Mahan Energen Limited, a company owned by Adani Power Limited, for private use. Will utilize 500 MW production capacity. 

These two industrialists of Gujarat are said to be rivals of each other. Both the industrialists have been vying with each other for years to reach the top two positions in the list of Asia's richest people. Mukesh Ambani is involved in oil and gas, retail, telecom business while Adani Group is involved in infrastructure business spanning from ports to airports, coal and mining. However, both the groups are rivals of each other in the green energy business.  

Adani Group aspires to become the world's largest renewable energy producer by 2030, while Reliance is building four gigafactories in Jamnagar, Gujarat. Each of these factories is for solar panels, batteries, green hydrogen and fuel cells. Adani Group is also setting up three gigafactories to manufacture solar modules, wind turbines and hydrogen electrolyzers. 

Conflict was predicted even when Adani Group had applied to participate in the 5G spectrum auction. However, unlike Ambani, Adani Group had purchased 400 MHz of spectrum in the  26 GHz band, which is not for public networks. 

In the year 2022, a company with prior relations with Ambani had sold its stake in NDTV to Adani Group, after which it became easier for Adani Group to acquire NDTV. Earlier this month, Gautam Adani was present at the functions organized before the marriage of Mukesh Ambani's younger son Anant Ambani in Jamnagar. 

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