In a significant development, SJVN, the state-run hydroelectric power producer, has inked a pivotal Memorandum of Understanding (MoU) with Power Finance Corporation Ltd. (PFC) to secure financial backing for an extensive portfolio of projects. This array comprises predominantly renewable energy initiatives along with thermal generation projects.
The total estimated cost of these transformative projects stands at a staggering Rs 1.19 lakh crore. According to the terms outlined in the MoU, the provision of term loan financial assistance is tentatively slated to cover 70 percent of the overall project expenditure. It's worth noting that this financial support may be subject to augmentation, particularly for renewable energy ventures, to cater to their specific project requisites.
One noteworthy feather in SJVN's cap is the recent acquisition of an 18 MW solar project from the Bhakra Beas Management Board (BBMB). The project is slated for development on BBMB's land parcels located in Himachal Pradesh and Punjab, with a target commissioning date set for August 2024. In its inaugural year of operation, this project is expected to generate an impressive 39.42 million units of energy, and over a span of 25 years, it is projected to accumulate a total energy output of 917 million units.
Furthermore, SJVN has achieved significant milestones by securing several renewable projects in the states of Punjab and Assam.
What makes this development even more remarkable is the exceptional performance of both SJVN and PFC in the year 2023. Their stock prices have surged by over 100 percent, marking a historic milestone for both companies as their stock values have doubled within a single calendar year. This remarkable feat underscores the growth and potential of these two energy giants in the dynamic Indian market.