Adani Power Ltd (APL) announced on Monday that its subsidiary, Mahan Energen Ltd (MEL), has given the green light to a proposal for merging coal mining entity, Stratatech Mineral Resources. Stratatech Mineral Resources, a subsidiary of Adani Enterprises, has secured rights to the Dhirauli Coal Mine in Madhya Pradesh, strategically positioned in close proximity to MEL’s thermal power plant.
The proposed merger is anticipated to empower MEL to effectively operate the Dhirauli Coal Mine as a captive coal source, thereby enhancing its fuel security measures. Adani Power highlighted this development in an exchange filing, citing the potential benefits of the amalgamation.
“The proposed integration will enable MEL to harness the resources of the Dhirauli Coal Mine, thereby fortifying our fuel security and contributing to the efficient operation of our thermal power plant,” stated a spokesperson for Adani Power.
However, the proposed merger is contingent upon obtaining necessary approvals, including those from shareholders. Adani Power emphasized its commitment to adhering to regulatory requirements throughout the process.
In its filing, the company stated, “… the wholly-owned subsidiary Mahan Energen Limited (MEL) has approved a scheme for the amalgamation of Stratatech Mineral Resources Private Limited (SMRPL) with MEL.” SMRPL, a wholly-owned subsidiary of Adani Enterprises Limited, is primarily engaged in coal mining and allied activities. On the other hand, MEL specializes in power generation and sales.
Industry analysts have observed that the proposed merger aligns with Adani Power’s strategic objectives of optimizing resource utilization and enhancing operational efficiency. Furthermore, it is seen as a proactive step towards mitigating potential fuel supply disruptions and ensuring sustained power generation.
The consolidation of resources and expertise from both entities is expected to create synergies that would benefit Adani Power’s long-term growth trajectory. As the global energy landscape continues to evolve, strategic initiatives such as this merger are crucial for companies like Adani Power to maintain competitiveness and resilience in the market.
