PSU stock: SJVN shares in focus today. Here's why

Shares of SJVN Ltd will be in focus on Monday morning after the PSU in a stock exchange filing said a wholly-owned subsidiary SJVN Green Energy Limited (SGEL) signed a power usage agreement (PUA) for 500 MW Solar Power and a power purchase agreement (PPA) for 100 MW solar power with Rajasthan Urja Vikas and IT Services (RUVITL).

SGEL has entered into long-term agreements with RUVITL for 25 years for supply of cumulative 600 MW solar power. The PUA with RUVITL is for 500 MW solar power from Bikaner Solar Power Project and PPA with RUVITL is for 100 MW Solar Power from Rajasthan Solar Power Project. The PUA was signed for supply of 500 MW Power at a tariff of Rs 2.57 per unit from 1000 MW Bikaner Solar Power Project being developed by SGEL under the Phase-II (Tranche-3) of the CPSU Scheme.

"This project is the country’s largest single location project being developed at Village Banderwala, Bikaner, Rajasthan. The 1000 MW Solar Project is expected to generate 2454.84 million units in the first year and the cumulative energy generation over a period of 25 years would be about 56,474 million units. The project is being developed at a cost of Rs. 5,491 Crores and expected to commission by September 30, 2024," SJVN said in the BSE filing.

SJVN said commissioning of this project is expected to reduce 27,67,219 tonnes of carbon emission. With signing of this PUA, SGEL has secured tie-up of entire 1000 MW for this project.

The other two beneficiaries from this project are UPPCL (200 MW) and JKPCL (300 MW). "The PPA was signed for supply of 100 MW Solar Power at a tariff of Rs. 2.62 per unit from the Project bagged by SGEL through Competitive Bidding for which LOA was issued by RUVITL on October 6, 2023. This project shall be developed at 387.56 Acres of land of Sambhar Salts Limited at Nawa, Rajasthan leased in favour of SGEL for 28 years. The project shall be developed on Build Own and Operate (BOO) basis at a tentative cost of around Rs 550 crore," SJVN.

The project is expected to generate 252 million units in the first year and the cumulative energy generation over a period of 25 years would be about 5866 million units. Commissioning of this Project is expected to reduce 287434 Tonnes of carbon emission.