SJVN’s Stock Surges as Subsidiary Secures Contract for Developing 320 MW Solar Project – EQ
Shares of SJVN Ltd., a Joint Venture between the Government of India and the state government of Himachal Pradesh hit a record high on Tuesday after the company won orders to build solar power projects in Assam.
The company’s wholly-owned subsidiary, SJVN Green Energy Ltd., received three Letter of Awards (LoA) from the Assam Power Development Corp. Ltd. (APDCL) for three solar power projects of cumulative capacity of 320 megawatts (MW).
SJVN said that SGEL had participated in three separate tariff-based competitive bidding tenders of APDCL – 50 MW, 70 MW and 200 MW.
The 50 MW and 70 MW projects are under the solar park category and have been allotted at a tariff of Rs 3.92 per unit and the 200 MW project is to be developed anywhere in Assam and has been allotted at a tariff of Rs 3.90 per unit.
The projects will be commissioned within a period of 18 months from the date of signing of the power purchase agreement (PPA) and are expected to be commissioned by March 2025. The tentative cost of construction and development of these 320 MW projects is around Rs 1,900 crore, the company said.
These three solar power projects will be developed on a build, own and operate (BOO) basis. The projects are expected to generate cumulative 628 million units (MUs) in the first year and 14,591 MUs over a period of 25 years.
Earlier this month, SJVN was in news after it inked two pacts with Punjab State Power Corp. Ltd to supply 1,200 MW of solar power from its projects – one of the biggest solar power purchase pacts in the country.
In July, the company had also won five projects of 5,097 MW from the Arunachal Pradesh government. The development of these projects will involve an investment of over Rs 50,000 crore.
SJVN had earlier said that it was aiming to achieve 25 GW of generation capacity by the end of the current decade, more than half of which will be through renewable resources.
Brokerage firm CLSA had expected SJVN’s shares to double in value over the next four years while initiating coverage on the stock in October last year. However, it has done so within the next 10 months. All five analysts who track the stock have a buy recommendation on it.
Shares of SJVN are trading 3.3 percent higher at Rs 62.80.
