SJVN Board Approves Joint Venture With IOC

SJVN Ltd., formerly known as Satluj Jal Vidyut Nigam, is an Indian public sector undertaking involved in hydroelectric power generation and transmission. It was incorporated in 1988 as a joint venture between the Government of India and the Government of Himachal Pradesh. SJVN board approved signing a joint venture agreement with Indian Oil Corporation Limited to develop renewable projects.

SJVN Joint Venture With IOC

SJVN Ltd. in its latest board meeting has approved the signing of a Joint Venture Agreement with Indian Oil Corporation Limited for the purpose of formation of a Joint Venture Company for the development of Green RTC/Renewable Projects and other New Technology Projects. The formation of this joint Venture Company is also subject to the approval of the Ministry of 

Power, NITI Aayog, Department of Investment and Public Asset Management.

Purpose of the Joint Venture

The SJVN board has approved the formation of a joint venture with IOC Ltd. This collaboration will lead to the establishment of a Joint Venture Company (JVC) dedicated to the development of Green Real-Time Communication (RTC) and renewable energy projects. This strategic partnership aims to advance sustainable energy solutions and drive innovation in the renewable energy sector. The entity to be formed will be a 50:50 Joint Venture 

whereby both SJVN and IOCL shall hold a 50% stake. Both entities share a common promoter which is The President of India.

Details Regarding Initial Capital

The proposed initial capital will be like: An authorized Capital of the Joint Venture company will be Rs.250 crore and the paid-up capital of the Joint Venture company will be Rs.2 crore divided into 20,00,000 shares of Rs.10 each. 

Conclusion

This joint venture agreement between SJVN and IOC Ltd represents a significant step forward in the development of green and renewable energy projects, as well as the adoption of new technologies. With an authorized capital of Rs.250 crore and a paid-up capital of Rs.2 crore, this Joint Venture Company (JVC) is aiming to make substantial contributions to sustainable energy initiatives. The formation of this joint Venture Company is also subject to the approval of the Ministry of Power, NITI Aayog, DIPAM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.