SJVN Ltd Secures Rs 7,000 Crore Project; Stock Surges Over 10%!

SJVN Limited through its wholly-owned Subsidiary i.e., SJVN Green Energy (SGEL), has received the letter of Intent (LoI) from Punjab State Power Corporation (PSPCL) on July 21, 2023 for procurement of 1200 MW Solar Power. SGEL will develop a 1000 MW project anywhere in the country and balance 200 MW in the state of Punjab as per the RFS provisions.  

The Solar projects shall be developed on Build Own and Operate (BOO) basis. The tentative cost of construction and development of the 1200 MW project is around Rs 7,000 crore. The projects are expected to generate 2997 MUs in the 1st year and the cumulative energy generation over a period of 25 years would be about 69661 MUs. 

The project shall be commissioned in a period of 18 Months from the date of signing of the PPA and is expected to be commissioned by December 2024. The PPA shall be signed between PSPCL and SGEL for 25 years. The commissioning of this Project is expected to reduce 34.2 lakh Tonnes of carbon emission and would contribute to GoI’s mission of reduction in carbon emission.  

Additionally, the company has also signed Power Purchase Agreements (PPA) for 300 MW Renewable Energy Projects with Maharashtra State Electricity Distribution Company Limited (MSEDCL) in Mumbai and with Solar Energy Corporation of India Limited (SECI).  

SJVN’s principal business activity is electricity generation. The company is also engaged in the business of providing consultancy. 

Today, the stock opened at Rs 52.65, with a high and low of Rs 57.20 and Rs 52.65. The stock is currently trading at Rs 56.56, up by 12.89%.   

The stock has a 52-week high of Rs 57.20 and a 52-week low of Rs 29.90. The company has a ROCE of 9.05% and an ROE of 10.2% with a market capitalisation of Rs 22,168 crore.

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