Adani Power's Strategic Merger for Improved Fuel Security

Adani Power Ltd's subsidiary, Mahan Energen Ltd, has approved a proposal to merge Stratatech Mineral Resources with itself to enhance fuel security. The amalgamation will allow MEL to operate Dhirauli Coal Mine as a captive resource. The proposal awaits necessary shareholder and regulatory approvals.

Adani Power Ltd (APL) announced on Monday that its subsidiary, Mahan Energen Ltd (MEL), has approved the merger of coal mining company Stratatech Mineral Resources for enhanced fuel security.

Stratatech Mineral Resources, a subsidiary of Adani Enterprises, has been allocated the Dhirauli Coal Mine in Madhya Pradesh, located near MEL's thermal power plant. The merger will enable MEL to operate the Dhirauli Coal Mine as a captive resource, thereby improving its fuel security, the company disclosed in an exchange filing.

With a peak-rated capacity of producing 6.5 million tonnes of coal annually, Dhirauli Coal Mine will significantly boost MEL's fuel supply. The proposed amalgamation, however, remains subject to necessary shareholder and regulatory approvals, as specified by the company.