The shares of the hydroelectric power generation and transmission company gained up to 9 percent after the company received the letter of intent (LOI) from Gujarat Urja Vikas Nigam Limited (GUVNL) for a 200 MW Solar Power Project. 

With a market capitalization of Rs 58,789.74 crore, the shares of SJVN Ltd were trading at Rs 149.60 per share, increasing around 1.80 percent as compared to the previous closing price of Rs 146.95 apiece. 

According to the company filing, SJVN Ltd received the Letter of Intent from Gujarat Urja Vikas Nigam Limited (GUVNL) for the 200 MW Solar Power Project in GUVNL Phase XXII. The estimated cost of building and development for this project is Rs 1,100 crore. 

Furthermore, the Power Purchase Agreement (“PPA”) with GUVNL will be completed upon GERC’s tariff acceptance. The project will be completed within 18 months following the PPA’s signature. GUVNL and SGEL will sign a 25-year PPA agreement. 

On the other hand, SJVN Green Energy Limited (“SGEL”), a wholly-owned subsidiary of the Company, previously won the initial 100 MW Solar Project through bidding and an additional 100 MW under the Greenshoe option at a tariff of Rs 2.63 per unit on a Build Own and Operate basis in an e-RA conducted by GUVNL in December 2023. 

Additionally, the project is planned to generate 508.4 million units in the first year following commissioning, with a total estimated energy output of 11,836.28 million units over the next 25 years. This Project’s commissioning is estimated to eliminate 5,79,976 tonnes of carbon emissions, contributing to the Government of India’s aim of reducing carbon emissions. 

The company’s revenue increased by 30 percent, from Rs 675 crore in Q1FY24 to Rs 878 crore in Q2FY24. During the same period, net profit increased by 61 percent, from Rs 272 crore to Rs 440 crore. 

SJVN Limited is an India-based firm that primarily generates energy and charges a price for doing so. The company manufactures and offers three main goods and services: power generation (hydro, wind, and solar), consulting, and transmission. 

Written by:- Abhishek Singh 


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