Multibagger miniratna seals deal: 300 MW clean energy pact with two companies: Do you own it?

The stock has witnessed significant buying activity in the last 3 years as it has surged more than 119%.

On Friday, D-street's bulls faced a negative trend as the Sensex and Nifty both opened lower, declining by 0.59 per cent and 0.68 per cent respectively, at the start of the trading session.

On July 20, 2023, SJVN Green Energy Limited (SGEL), a wholly-owned subsidiary of the SJVN Limited, has secured Power Purchase Agreements (PPAs) for 300 MW of Renewable Energy Projects. The PPAs consist of a 200 MW Solar Power Project with Maharashtra State Electricity Distribution Company Limited (MSEDCL) in Mumbai and a 100 MW Wind Power Project with Solar Energy Corporation of India Limited (SECI) in Delhi.

The 200 MW Ground Mounted Solar Project in Maharashtra, with an estimated development cost of Rs 1,200 Crores, was acquired by SGEL at a tariff of Rs 2.90 per unit through a competitive bidding process during an e-reverse auction organized by MSEDCL. The project is scheduled for commissioning in December 2024, and it is projected to generate 456 MU in its first year, with an expected cumulative energy generation of approximately 10,481 MUs over a span of 25 years.

Similarly, the 100 MW Wind Power Project, with an estimated development cost of Rs 750 crores, was secured by SGEL at Rs 2.90 per unit on a Build Own and Operate basis through an e-reverse auction. The project is planned for commissioning in March 2025, and its first-year energy generation is projected to be around 289.27 MUs. Over a period of 25 years, it is expected to generate approximately 7,231.75 MUs.

The commissioning of these projects is expected to have a positive impact on the environment by reducing approximately 8,67,916 Tonnes of carbon emissions, aligning with the Government of India's mission to achieve net-zero emissions by 2070. In light of the government's ambitious target of generating 500 GW of energy from non-fossil sources by 2030, the Company has taken a proactive approach towards developing renewable energy.

By actively adding significant renewable projects to its portfolio, the Company is making substantial progress towards realizing its Shared Vision of achieving 5,000 MW installed capacity by 2023-24, 25,000 MW by 2030, and ultimately reaching 50,000 MW installed capacity by 2040. These recent additions of new projects demonstrate the Company's commitment to contributing to the country's renewable energy goals and promoting sustainable practices in the power sector.

SJVN, previously recognized as Satluj Jal Vidyut Nigam, is an Indian public sector undertaking primarily engaged in the generation and transmission of hydroelectric power. Its inception dates back to 1988 when it was established as Nathpa Jhakri Power Corporation, operating as a joint venture between the Government of India and the Government of Himachal Pradesh.

The company has been consistently maintaining a robust dividend payout ratio of 72 per cent.

The stock has witnessed significant buying activity in the last 3 years as it has surged more than 119 per cent.

Today, the shares of SJVN Limited plunged 1.85 per cent. The 52-week high low are Rs 50.71 per share and Rs 27.90 per share, respectively on BSE. Keep a close eye on this trending stock.

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