Rs 7,000 crore projects: This multibagger power generation company bags procurement contract for 1,200 MW from Punjab State Power Corporation!

The company recently signed a power purchase agreement for a 300 MW renewable energy project.

On July 22, 2023, SJVN Limited informed in the exchange filing that the company’s wholly-owned subsidiary i.e., SJVN Green Energy Limited (SGEL) has received the letter of Intent (LOI) from Punjab State Power Corporation Limited (PSPCL) for procurement of 1200 MW Solar Power. SGEL will develop a 1000 MW project anywhere in the country and balance 200 MW in the state of Punjab as per the RFS provisions. The solar projects shall be developed on Build Own and Operate (BOO) basis. The tentative cost of construction and development of the 1200 MW project is around Rs 7,000 crore.

Earlier, on July 21, 2023, the company informed that it has signed an MoU with REC Limited for financing the projects of the company and its subsidiaries and joint ventures to the extent of Rs 50,000 crores.

Furthermore, the company has also signed Power Purchase Agreements (PPA) for 300 MW Renewable Energy Projects. The PPA has been signed for a 200 MW Solar Power Project Capacity with Maharashtra State Electricity Distribution Company Limited (MSEDCL) in Mumbai and with Solar Energy Corporation of India Limited (SECI) for a 100 MW Wind Power Capacity in Delhi. The development cost of the 200 MW Ground Mounted Solar Project in Maharashtra is around Rs 1,200 Crores. SGEL has bagged the project at a tariff of Rs 2.90 per unit through a competitive bidding process in an e-reverse auction organized by MSEDCL.

SJVN is engaged in the business of electricity generation. The company is also engaged in the business of providing consultancy for hydropower projects. The shares of the company have gained more than 100 per cent in the three years and investors should keep a close eye on this stock.

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