50,000-MW capacity aim by 2040: This multibagger power generation company bags new order worth Rs 1,400 crore with Solar Energy Corporation of India!

The stock gave multibagger returns of over 100 per cent in 6 months while BSE Sensex Index is 6.9 per cent.

Satluj Jal Vidyut Nigam Limited (SJVN) informed that the company has signed a power purchase agreement (PPA) for a 200 MW grid-connected wind power project with Solar Energy Corporation of India Limited (SECI). The tentative cost for the development of this project is Rs 1,400 crore. The project is expected to generate 482 million units in the first year after commissioning and the projected cumulative energy generation over a period of 25 years is 12,050 million units. The project will be commissioned by November 2025 i.e., within 24 Months from the effective date of PPA signing.

SJVN Green Energy Limited (SGEL), a subsidiary of SJVN Limited, has won a 200 MW wind power project at a tariff of Rs 3.24 per unit in an open competitive bidding process conducted by the Solar Energy Corporation of India (SECI). The project will be developed by SGEL on a build-own-operate (BOO) basis and will be located anywhere in India. With the allotment of this project, the wind portfolio of SJVN Limited now stands at 497.6 MW.

This is a significant development for SJVN Limited as it expands its presence in the renewable energy sector. The company is committed to developing clean and sustainable energy sources for the future.

Earlier, the company informed that the Central Electricity Authority (CEA), Ministry of Power, Government of India, has transferred concurrences of DRPs for the 3,097 MW Etalin HEP and 680 MW Attunli HEP projects to Jindal Power Ltd. The total project cost is estimated at Rs 40,000 crore, and the projects are expected to generate 15,566 million Units of electricity annually. The levelized tariff from both projects is Rs. 4.51 per unit.

Furthermore, SJVN Limited has successfully connected the first unit of its 60 MW Naitwar Mori Hydro Electric Project to the national grid. The project, comprising two 30 MW generating units, is anticipated to generate 265.5 million units of electricity annually. The company has also constructed a transmission line for power evacuation and will provide 12 per cent of the generated electricity to the state as royalty.

SJVN, a leading CPSU under the Ministry of Power, plans to install over 10,000 MW of renewable energy capacity in three years while progressing towards its shared vision of becoming a company of 25,000 MW by 2030 and 50,000 MW by 2040. The Company has aligned its shared vision with that of the Government of India’s target of achieving 50 per cent energy from non-fossil fuel sources by 2030.

SJVN is engaged in the business of electricity generation. The company is also engaged in the business of providing consultancy for hydropower projects. The company has been maintaining a healthy dividend payout of 72 per cent with a dividend yield of Rs 4.38 per cent. The company reported positive numbers in its Quarterly Results (Q2FY24) & and half-yearly results (H1FY24) for the year ended September 30, 2023.

Today, shares of SJVN Ltd gained 1.6 per cent to Rs 77.30 per share from its previous closing of Rs 76.09. This company has a market cap of over Rs 30,000 crore with a 3-year CAGR of 50 per cent. The stock gave multibagger returns of over 100 per cent in 6 months while BSE Sensex Index is 6.9 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.