IREDA Inks MoU With SJVN, GMR For 900 MW Hydro Project In Nepal; Shares Rally

Indian Renewable Energy Development Agency Ltd shares recorded nearly 5% rally on September 10, 2024 after it inked an MoU with SJVN and GMR Energy to develop and implement 900 MW Upper Karnali hydro-electric project in Nepal. Current market price of IREDA shares on BSE is Rs 233.00 per share. IREDA shares slipped over 2% in last 1-week and gained 123% so far this year. Meanwhile, SJVN Ltd shares also zoomed 4.51% at the time of writing the story. Current market price of SJVN Ltd shares on BSE is Rs 132.00 per share with intraday gain of 4.51%. IRDEA has a market capitalisation of Rs 62,718.99 crore. Check details below:

IRDEA Signs Pact With SJVN, GMR: As per the regulatory filing of SJVN, "In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that SJVN Limited ("Company"), GMR Upper Karnali Hydro Power Limited ("GMR") and IREDA has signed a MoU for development of Upper Karnali Hydro Electric Project (900 MW) through JV Company in Nepal. The Company and GMR will hold 34% shareholding each and IREDA will have 5% shareholding in the proposed JV. The balance Equity will be held by NEA (Nepal Electricity Authority). The project shall be developed on BOOT basis with 25 years concessional period after commissioning."

The approximate project cost shall be Rs 9,100 crore. The project is proposed to be funded through 70:30 Debt Equity ratio, added the BSE filing.

Pradip Kumar Das, Chairman & Managing Director of IREDA, said, Our investment in this important hydropower project underscores IREDA's ongoing commitment to advancing renewable energy initiatives. This collaboration not only accelerates the development of Nepal's hydropower sector but also strengthens regional energy cooperation, supporting our shared goal of sustainable growth, according to reports.

The project holds strategic importance for IREDA, as it will help harness Nepal's vast hydropower potential while reinforcing IREDA's dedication to renewable energy development, said IREDA.

IRDEA Shares Performance: The 52-week high price of IREDA shares on BSE is Rs 310 per share (as on 15/07/2024) and 52-week low price is Rs 49.99 per share (as on 29/11/2023), respectively. IREDA shares slipped over 8% in last 2-weeks, gained 30% in last 3-months, and offered return of 58% in last 6-months.

IREDA About: Indian Renewable Energy Development Agency Limited (IREDA) was established on 11th March, 1987 as a Public limited Government Company under the Companies Act, 1956 and it promotes, develops and extends financial assistance for Renewable Energy and Energy Efficiency/Conservation Projects, according to its official website.