Adani Power's subsidiary Mahan Energen Ltd. approves merger of coal mining firm Stratatech Mineral Resources

Adani Power Ltd stated that its subsidiary, Mahan Energen Ltd (MEL), has given it approval regarding the decision of merging with the coal mining company, Stratatech Mineral Resources.

Stratatech Mineral Resources (SMRPL), a part of Adani Enterprises, has secured rights to mine coal from the Dhirauli Coal Mine (Madhya Pradesh). The plant is located close to MEL’s power plant.

The suggested merger is expected to enable MEL to efficiently manage the Dhirauli Coal Mine as a captive coal mine, thus improving its fuel security measures. Adani Power mentioned this progress in a filing with the exchange, noting the possible advantages of the merger.

Nevertheless, the planned merger depends on obtaining required approvals, which include those from shareholders. Adani Power emphasised on following regulatory mandates during the entire procedure.

The company stated that SMRPL is a subsidiary of Adani Enterprises Limited and is involved in mining coal, minerals, ores, and related activities. While, MEL is involved in the generation and sale of electricity.

Industry analysts have noted that the planned merger is in line with Adani Power's strategic goals of maximizing resource use and improving operational efficiency. Moreover, it is considered a pre-emptive measure to reduce the risk of fuel shortages and guarantee continuous electricity production.