Mukesh Ambani's Reliance Industries has picked up a 26 per cent stake in a Madhya Pradesh power project of Gautam Adani, and signed a pact to use the plants' 500 MW of electricity for captive use.

Reliance will buy five crore equity shares in Mahan Energen Ltd, a wholly owned subsidiary of Adani Power Ltd, of face value ?10 at par ( Rs.50 crore).

As per the deal, one unit of 600 MW capacity from MEL's Mahan thermal power plant, which has an aggregate operating and upcoming capacity of 2800 MW, will be designated as the Captive Unit for this purpose.