SJVN rallies over 13% on 500 MW solar project deal with Gujarat Urja Vikas Nigam

Shares of SJVN Ltd on Thursday rallied more than 13% to reach the day's high of ₹114.29 apiece on NSE after the state-owned company announced that its renewable energy arm received a Letter of Intent (LOI) from Gujarat Urja Vikas Nigam for a 500 MW solar project.

The tentative cost of construction and development of this solar project, to be developed at GIPCL Solar Park in Khavda, is ₹2,700 crore, the company said in an exchange filing on Wednesday.

"SJVN Green Energy Limited (SGEL), the renewable arm of SJVN, has received the Letter of Intent (LOI) from Gujarat Urja Vikas Nigam Limited (GUVNL) for 500 MW Solar Project in GUVNL Phase - XXI," the public sector undertaking said.

SJVN chairperson and managing director apprised that SJVN Green Energy earlier bagged the 500 MW (100 MW + 400 MW green shoe) project through tariff-based competitive bidding at a tariff of ₹2.54 per unit on build, own and operate basis on e-RA was conducted on January 25 by GUVNL.

The company will execute the power purchase agreement with GUVNL after the adoption of the tariff by the Gujarat Electricity Regulatory Commission (GERC). The solar project is expected to be commissioned in 18 months from the date of signing of the purchase deal, by November 2025.

The project is expected to generate 1,271.07 million units in the 1st year after commissioning, and its projected cumulative energy generation capacity over 25 years is pegged at about 29,245 million units, as per the filing.

The project's commissioning is likely to cut 14,33,025 tonnes of carbon emissions and will help in the government's mission to check carbon emissions.

At 14:25 pm, shares of SJVN were trading higher by 13.9% at ₹115 apiece on NSE.