LIC-backed power generation company bags new order worth Rs 5,792.36 crore from Ministry of Power
The stock gave multibagger returns of 142 per cent in just 1 year while the BSE Sensex Index is up by 20 per cent.
The Cabinet Committee on Economic Affairs has approved a Rs 5,792.36 crore investment for the 669 MW Lower Arun Hydro Electric Project (LAHEP) in Nepal, with a levelized tariff of Rs 4.99 per unit. This project, located downstream of the Arun-3 Hydro Electric Project on the Arun River, will generate 2,900 million units of electricity annually through four 167.25 MW units. Awarded to SJVN Ltd through bidding, the LAHEP will be constructed on a Build-Own-Operate-Transfer basis with government support and is expected to be operational within 60 months. The generated power will be transmitted to India via a 217 km, 400 KV double-circuit transmission line under construction.
SJVN Ltd has secured a Letter of Intent from the Mizoram government to develop the 2,400 MW Darzo Lui Pumped Storage Project, its first in the state. This Rs 13,947.50 crore project involves building a pumped storage facility on Darzo Nallah, a Tuipui river tributary. Comprising eight 300 MW units, it will generate 4,993.20 MU annually while consuming 6,331.66 MU for pumping. The project is expected to be completed in 72 months, with a formal agreement signed within three months. Separately, SJVN's subsidiary, SGEL, will develop 4,500 MW of solar and wind projects to supply a large-scale green ammonia project in Andhra Pradesh, marking its entry into the commercial and industrial segment. Both companies will explore innovative commercial frameworks, including dollar-denominated tariffs.
DSIJ's DSIJ's ‘Mid Bridge’ service recommends well researched Mid-Cap stocks for smart investing. If this interests you, do download the service details here.
The company is on rapid progression to achieve its shared vision of 25,000 MW by 2030 & 50,000 MW by 2040. This shared vision has been formulated in sync with the commitment of the Government of India to generate 50 per cent of energy from non-fossil fuel-based energy resources by 2030.
SJVN, formerly known as Satluj Jal Vidyut Nigam Ltd, is an Indian public sector undertaking involved in hydroelectric power generation and transmission. It was incorporated in 1988 as Nathpa Jhakri Power Corporation, a joint venture between the Government of India and the Government of Himachal Pradesh. The company has a market cap of over Rs 60,000 crore and has been maintaining a healthy dividend payout of 65.4 per cent. The company reported positive numbers in its Quarterly Results (Q4FY24) and annual results (FY24) for the year ended March 31, 2023.
As of June 2024, the Life Insurance Corporation of India (LIC) owns 2.26 per cent while FIIs & DIIs increased their stake in June 2024 compared to March 2024. The stock gave multibagger returns of 142 per cent in just 1 year while the BSE Sensex Index is up by 20 per cent. Investors should keep an eye on this power stock.
Disclaimer: The article is for informational purposes only and not investment advice.
Also Read: LIC-backed multibagger penny stock under Rs 25 - Could it be the next Suzlon Energy? Board announces rights issue for business expansion; target for 1 GW capacity!