SJVN Ltd Shares Surge 7% on Signing Power Usage Pact for Solar Project in Jammu & Kashmir

SJVN Ltd witnessed a significant surge in its shares, climbing 7% to reach a day's high of Rs 127.65 apiece on the National Stock Exchange (NSE). This surge follows the state-run hydro power company's announcement of signing a power usage agreement with Jammu & Kashmir Power Corporation Ltd (JKPCL) for a 300 MW solar power capacity.

According to an exchange filing, SJVN Green Energy Limited (SGEL), a wholly owned subsidiary of SJVN Ltd, finalized the Power Usage Agreement (PUA) with JKPCL at Jammu on February 23, 2024. This agreement entails the supply of 300 MW of solar power from the under-construction 1,000 MW Bikaner Solar project.

The Bikaner Solar project, being developed under the CPSU Scheme of IREDA at a cost of Rs 5,491 crore, is slated for commissioning by July 2024. It is being developed under the Domestic Content Requirement (DCR) mode and will cater to government usage, either directly or through distribution companies (discoms).

The signing of this agreement marks a significant milestone in SJVN Ltd's journey towards achieving its Shared Vision of 25,000 MW by 2030 and 50,000 MW by 2040. This vision aligns with the government's commitment to generate 50% of energy from non-fossil fuel-based resources by 2030.

The move underscores SJVN Ltd's commitment to renewable energy and its contribution to India's energy transition towards sustainability. By harnessing solar power and forging strategic partnerships, the company aims to play a pivotal role in meeting the nation's energy needs while reducing its carbon footprint.

The surge in SJVN Ltd's shares reflects investor confidence in the company's strategic initiatives and its potential to capitalize on the growing demand for renewable energy solutions. As the company progresses towards commissioning the Bikaner Solar project and further expands its renewable energy portfolio, it is poised to contribute significantly to India's clean energy transition and sustainable development goals.