Ambani-Adani's joint power play?

No signs of powerful billionaires joining forces soon in other areas of common interest

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THE purchase of a 26% stake by Mukesh Ambani-led Reliance Industries Ltd (RIL) in a Madhya Pradesh power project owned by Gautam Adani's Adani Power is seen as a 'landmark' development in India's corporate world.

However, this partnership is rather driven by current electricity norms around captive power units and there are rarely any signs of the two powerful billionaires joining forces soon in other areas of common interest.

"Reliance had limited choice other than to tie up and purchase a 26% stake in the power plant owned by an Adani Group company. Adani's Mahan Energen is the only facility in the area that has the capacity to readily provide the power requirement of Reliance and as per electricity rules around captive power units, it became the right thing for the two to tie up," said a partner at a leading consultancy firm requesting not be named. He added a handful of similar deals take place every year in the country and RIL as well as Adani have captive power units around their mega factories.