LIC-backed power generation company inks an MoU of 4,500 MW renewable energy projects with AM Ammonia (India) Private Limited

The President of India’s portfolio sold 19,34,60,204 shares and decreased their stake to 55 per cent in March 2024 compared to 59.92 per cent in March 2023.

SJVN Ltd through its wholly owned subsidiary SJVN Green Energy Limited (SGEL) signed a Memorandum of Understanding (MoU) with AM Green Ammonia (India) Private Limited in the August presence of Sh. Akhileshwar Singh, Director (Finance), SJVN at Delhi, today. The MoU was signed by Sh. Ajay Singh, CEO, SGEL and Sh. Bhuwan Chandra Tripathi, CEO of AM Green Ammonia and Sh. A M Jha, CFO, SGEL, Sh. Jitendra Yadav, GM (F), SJVN and other senior officials from SJVN/SGEL and Greenko Group were present on the occasion.

The AM Ammonia (India) Private Limited, a company under Greenko Group is developing one of the world’s largest Green Ammonia Platforms at Kakinada, Andhra Pradesh. The platforms shall be developed in two phases starting with a capacity of one million tons per annum (MTPA) and ramping capacity to five million tons per annum by 2030 – equivalent of one million tonnes per annum of hydrogen. Under this MoU, the parties have agreed to cooperate for the supply/ sourcing of renewable energy on a long-term basis for these Green Ammonia Plants on mutually agreed terms and conditions.

SGEL will explore setting up 4,500 MW renewable energy projects in India including 2500 – 3000 MW of Solar Projects and 1500 – 2000 MW of Wind Projects over three phases which shall ensure a supply of about 11,500 million units on an annual basis. SGEL and AM Ammonia have agreed to explore innovative commercial frameworks to ensure competitive tariffs and adequate returns to SGEL including offering dollar-denominated tariffs. It has been agreed that the parties shall enter into a definitive agreement shortly to formalize the further course of action. SGEL is currently handling a RE Portfolio of about 7.2 GW under various stages of development i.e. Operation, Construction & Pre Construction. This MoU paves the way towards SGEL’s first venture into the Commercial & Industrial Segment.

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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 52,000 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. As of March 2024, Life Insurance Corporation of India (LIC) owns 1.73 per cent while FIIs bought 2,68,31,848 shares and increased their stake to 2.36 per cent compared to 1.68 per cent in December 2023.

The President of India’s portfolio sold 19,34,60,204 shares and decreased their stake to 55 per cent in March 2024 compared to 59.92 per cent in March 2023. The stock gave multibagger returns of 220 per cent in just 1 year while the BSE Sensex Index is up by 25 per cent. Investors should keep an eye on this power stock.

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