LIC-backed power generation company bags new order worth Rs 13,947.50 crore from Government of Mizoram

The stock gave multibagger returns of 175 per cent in just 1 year while the BSE Sensex Index is up by 20 per cent.

Satluj Jal Vidyut Nigam Ltd (SJVN Ltd) has secured a Letter of Intent from the Government of Mizoram to develop the 2,400 MW Darzo Lui Pumped Storage Project, marking the company's entry into the state. This domestic project, estimated to cost Rs 13,947.50 crores, involves constructing a pumped storage facility on Darzo Nallah, a Tuipui river tributary. The project, comprising eight 300 MW units, is expected to generate 4,993.20 MU annually while consuming 6,331.66 MU for pumping. The project is scheduled for completion within 72 months, with a formal agreement between SJVN and the Government of Mizoram to be signed within three months. The transaction is deemed to be at arm's length.

Earlier, SJVN's subsidiary, SGEL, signed an MoU with AM Green Ammonia to collaborate on renewable energy supply for the latter's large-scale green ammonia project in Andhra Pradesh. SGEL plans to develop 4,500 MW of solar and wind projects to meet the energy needs of this project, marking its entry into the commercial and industrial segment. Both companies will explore innovative commercial frameworks, including dollar-denominated tariffs, to ensure competitive pricing and adequate returns for SGEL.

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.

Today, shares of SJVN Ltd jumped 13.23 per cent to Rs 159.60 per share from its previous closing of Rs 140.95 per share. The stock’s 52-week high is Rs 170.45 and its 52-week low is Rs 52.69. 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 175 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. 

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