SJVN shares zoom 18% after bagging ₹7,000-cr order

Share of public sector power producer Satluj Jal Vidyut Nigam Ltd jumped 17.88% on Monday after the company’s solar unit, SJVN Green Energy Ltd bagged a ₹7,000-crore order from the Punjab State Power Corporation Ltd (PSPCL). The power purchase agreement will be signed between PSPCL and SGEL for 25 years.

The SJVN stock opened a gap up at ₹52.65 and went on to hit a 52-week high of ₹59.80 before settling at 59.20 on the Bombay Stock Exchange (BSE). Around 54.82 lakh shares are trading on the counter against the two-week average of 15.22 lakh, amounting to a turnover of ₹31.27 crore. At the current share price, SJVN's m-cap stands at ₹23,083.62 crore.

SJVN Green Energy Ltd had received the letter of intent from the Punjab State Power Corporation Limited (PSPCL) on July 21, 2023, for the procurement of 1,200 MW Solar Power.

"SGEL will develop a 1,000 MW project anywhere in the country, and balance 200 MW in the state of Punjab as per the RFS provisions. The solar projects will be developed on Build Own and Operate (BOO) basis. The tentative cost of construction/development of 1200 MW project is around Rs 7,000 cr," SJVN says via an exchange filing.

The entire project is expected to generate 2,997 MUs in the 1st year, and the cumulative energy generation over a period of 25 years will be about 69,661 MUs. The project will be commissioned in 18 months from the date of signing of the power purchase agreement and is expected to be commissioned by December 2024.

SJVN says the commissioning of the project is expected to reduce 34.2 lakh tonnes of carbon emission and will contribute to the government's mission of reduction in carbon emission. "With the addition of 1,200 MW capacity, the RE portfolio of SJVN/SGEL has crossed the psychological barrier of 5 GW and that too backed by PPA for 25 years," says SJVN.

The company is aiming to achieve 25 GW of generation capacity by the end of the current decade, more than half of which is bound to come from renewable resources, it adds.

SJVN has a total project portfolio of 54,327 MW, and aims to achieve a 'shared vision' of 5,000 MW by 2023-24, 25,000 MW by 2030, and 50,000 MW by 2040. “The shared vision has been formulated in sync with the commitment of the government of generating 50% of energy from non-fossil fuel-based energy resources by 2030,” says SJVN.

Separately, SJVN has announced its board has approved the acquisition of equity shares in joint venture company Cross Border Power Transmission Company Ltd (CPTC) for Rs ₹18.5 crore. The deal will raise the shareholding of the SJVN from the current 26% already held.

CPTC is a joint venture company and was incorporated on December 19, 2006, to engage in the business of building, maintaining, and operating transmission systems between India and neighbouring countries like Nepal, Bhutan, Bangladesh, Myanmar, Sri Lanka, and Pakistan for the purpose of export and import of electricity, the transmission of data and other related business. Its turnover of the last three financial years stood at ₹7.4 crore (FY23); ₹7.2 crore (FY22) and ₹7.1 crore (FY21).