Keeping up their upward trajectory, shares of SJVN spiked over 5% in early trade on Tuesday to register a new all-time high of 63.80 apiece. This came after the company, in an exchange filing on August 28, said that its wholly-owned subsidiary, SJVN Green Energy Limited, had received a letter of award from Assam Power Development Corporation Limited (APDCL) for three solar power projects with a cumulative capacity of 320 MW. The estimated cost for constructing and developing these projects is approximately ₹1,900 crore.
SJVN is engaged in the construction and operation of hydropower plants and thermal power plants. It also participates in renewable energy projects such as wind power and solar power, along with exploring opportunities in new and emerging technologies like battery storage, electric vehicles, green hydrogen/ammonia, and hydrogen cell storage.
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Stock price chart of SJVN
The company specified that SJVN Green Energy took part in three distinct tariff-based competitve bidding tenders organised by APDCL. These tenders encompassed projects of 50 MW, 70 MW, and 200 MW capacities. The 50 MW and 70 MW projects fall under the solar park category and have been secured at a tariff of ₹3.92 per unit. While the 200 MW project is designated for any location within Assam and has been secured at a tariff of ₹3.90 per unit, it said.
SJVN highlighted that these solar power projects will be developed under the Build Own and Operate (BOO) framework. According to the company, these projects are expected to generate a total of 628 MUs in the first year alone, with a cumulative energy generation of approximately 14,591 MUs over the course of 25 years.
“The commissioning of these projects is expected to reduce 7.14 lakh tonnes of carbon emission and would contribute to the Government of India’s mission of reducing carbon emissions,” said SJVN.
On August 14, SJVN announced that SJVN Green Energy had signed two Power Purchase Agreements (“PPAs”) with Punjab State Poer Corporation Limited (“PSPCL”).
The first PPA is for a 200 MW solar project, intended to be developed at any suitable location in Punjab. The second PPA is for a larger 1,000 MW solar project, aimed at development anywhere across the country. Both of these projects are slated for completion within a timeframe of 18 months and will follow the Build Own and Operate (BOO) model, the company said in a regulatory filing.
The anticipated investment for these combined projects is approximately ₹7,000 crore. The Letter of Intent for these 1,200 MW projects was received from PSPCL on July 21, 2023, it added.
The company, a Mini Ratna, Category-I, and Schedule-A’ CPSE under the administrative control of the Ministry of Power, Govt. of India, was incorporated on May 24, 1988, as a joint venture of the Government of India (GOI) and the Government of Himachal Pradesh (GOHP).
As of June 30, 2023, the Government of India owned a 59.92% stake in the company, while 26.85% was held by the Governmet of Himachal Pradesh and the rest (13.23%) by the public.
SJVN aims to be a 5000 MW company by 2023–24, a 25000 MW company by 2030, and a 50000 MW company by 2040
04 analysts polled by MintGenie on average have a ‘strong buy’ call on the stock.
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