SJVN stock jumps 13% after company bags ₹13,947 crore pumped storage project | Stock Market News

Shares of SJVN rose by 13.3% to ₹160 each in early trading on Friday, following the company’s announcement of a major solar project acquisition. On Thursday, SJVN revealed that it had received a Letter of Intent from the Government of Mizoram for the Darzo Lui Pumped Storage Project, marking its first venture in the state.

With an installed capacity of 2,400 MW, thePumped Storage Project has been proposed across Darzo Nallah, a tributary of Tuipui river

The estimated cost for the project is ₹13,947.50 crore, which includes interest during construction and financing costs at April 2023 price levels. The project will be an on-stream closed-loop pumped storage facility, consisting of eight 300-megawatt units and is expected to generate 4,993.20 million units of energy annually, assuming 95% plant availability.

The annual energy required to pump water to the upper reservoir is estimated at 6,331.66 million units, with the project slated for completion within 72 months, according to the company’s exchange filing. 

In June, SJVN, through its subsidiary SJVN Green Energy Limited (SGEL), signed a Memorandum of Understanding (MoU) with AM Green Ammonia (India) Private Limited.

According to the agreement, SGEL will provide 4.5 GW of renewable energy to support AM Green’s green ammonia production facilities. The project will be executed in three phases, with the initial phase expected to deliver 1,500 MW within two years.

AM Green Ammonia Holdings, backed by Greenko Group founders Mahesh Kolli and Anil Kumar Chalamalasetty, is developing one of the largest green ammonia production facilities globally. The facility will start with a capacity of one million tonnes per year (MTPA) of green ammonia, increasing to five MTPA by 2030. Five million tonnes of green ammonia is equivalent to about one million tonnes of green hydrogen.

SJVN, a Mini Ratna Category-I and Schedule-A Central Public Sector Enterprise (CPSE), operates under the Ministry of Power, Government of India. Established on May 24, 1988, as a joint venture between the Government of India and the Government of Himachal Pradesh, SJVN is partly owned by both governments and the public.

As of June 30, 2024, the Government of India held a 59.92% stake, the Government of Himachal Pradesh owned 26.85%, and the remaining 13.23% was held by public shareholders.

SJVN’s stock has been surging high on Dalal Street, driven by substantial order wins and strategic partnerships. The share price, which was ₹30.40 in March 2023, has skyrocketed to ₹155, marking a remarkable 410% return.

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