President of India-Backed Power Generation Stock Jumps After Signing MoU with Govt. of Bihar for 1,000 MW Hathidah Durgawati PSP
The stock is up by 26.40 per cent from its 52-week low of Rs 88.85 per share.
On Wednesday, shares of SJVN Ltd surged 7.60 per cent to an intraday high of Rs 112.30 per share from its previous closing of Rs 104.40 per share. The stock’s 52-week high is Rs 170.45 and its 52-week low is Rs 88.85. The shares of the company saw a spurt in volume by more than 6 times on BSE.
SJVN Ltd signed a Memorandum of Understanding (MoU) with Govt of Bihar in Patna for the development of the 1,000 MW Hathidah Durgawati Pumped Storage Project and other PSPs in the State of Bihar. Sh. Vijay Kumar Sinha, Hon’ble Deputy Chief Minister of Bihar, Sh. Bijendra Prasad Yadav, Minister of Energy and Planning & Development Department, Sh. Nitish Mishra, Minister of Industries and Tourism, Government of Bihar and Sh. Raj Kumar Chaudhary, CMD, SJVN along with other senior officials were present during the MoU signing.
The MoU was signed by Sh. Mukesh Kumar Sharma, General Manager, BDE, SJVN and Smt. Bandana Preyashi, IAS (Secretary), Department of Industries, Govt. of Bihar, Patna. The PSP development in the State of Bihar will create direct and indirect employment for 5,000 persons and an investment of about Rs 10,000 crore.
In August 2022, the Ministry of Power, Government of India, appointed SJVN as the nodal agency for developing Pumped Storage Projects (PSPs) in Bihar. Following this, the Secretary (Energy), of the Government of Bihar, allotted four PSPs to SJVN on August 22, 2022, named Telharkund PSP (400 MW), Sinafdar PSP (345 MW), Panchgotia PSP (225 MW) and Hathidah Durgawati PSP (1600 MW). After conducting ranking studies of these projects, SJVN prepared a Feasibility Study Report (FSR) for the most viable project, Hathidah Durgawati PSP, with a proposed capacity of 1,000 MW.
Proposed on river Durgawati in district Kaimur, Bihar, the Hathidah Durgawati PSP, with an installed capacity of 1,000 MW (4x250 MW), is designed to generate a daily peak energy of 6.325 Million Units (MU) and an annual peak energy of 2308.65 MU. The estimated project cost is Rs 5,663 crore, with a levelized tariff of Rs 9.39 per kWh (assuming a pumping energy rate of Rs 3 per kWh) based on February 2024 price levels. Currently, SJVN is developing about 12,000 MW of PSPS in various states such as Maharashtra, Karnataka, Mizoram and Himachal Pradesh.
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About the Company
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 40,000 crore and has been maintaining a healthy dividend payout of 65.4 per cent.
According to Quarterly Results, the net sales increased by 16.8 per cent to Rs 1,026.25 crore and net profit increased by 0.1 per cent to Rs 438.88 crore in Q2FY25 compared to Q2FY24. Looking at its half-yearly results, the net sales increased by 22.1 per cent to Rs 1,896.62 crore and net profit increased by 12.1 per cent to Rs 795.07 crore in H1FY25 compared to H1FY24. In its annual results, the net sales decreased by 12.2 per cent to Rs 2,579.37 crore and net profit decreased by 33 per cent to Rs 907.25 crore in FY24 compared to FY23.
As of September 2024, the Life Insurance Corporation of India (LIC) owns a 2.48 per cent stake and DIIs increased their stake to 4.29 per cent in September 2024 compared to June 2024. The stock is up by 26.40 per cent from its 52-week low of Rs 88.85 per share. Investors should keep an eye on this power stock.
Disclaimer: The article is for informational purposes only and not investment advice.