Introduction:
SJVN Stock Zooms: On July 26, 2024, shares of SJVN surged by 13.23%, reaching an intraday high of Rs 159.60 per share. This significant rise was driven by the company’s announcement regarding the allocation of a major energy project.
Project Allocation Announcement: SJVN revealed that the Government of Mizoram has awarded it the 2,400 MW Darzo Lui Pumped Storage Project (PSP). This announcement came through an exchange filing where SJVN stated, “We hereby inform you that the Company has received a Letter of Intent for the allotment of Darzo Lui Pumped Storage Project from the Government of Mizoram.”
Project Details:
Capacity and Structure: The Darzo Lui PSP will have an installed capacity of 2,400 MW, divided into eight units of 300 MW each. It will be an On-stream Closed Loop Type pumped storage facility.
Energy Generation: The project is expected to generate approximately 4,993.20 million units (MU) of energy annually, based on a 95% plant availability.
- Input Energy Requirements: It will require an estimated 6,331.66 MU of input energy annually for pumping water to the upper reservoir, also assuming 95% plant availability.
- Cost and Timeline: The total estimated cost for the project, including interest during construction (IDC) and financing costs as of April 2023 prices, stands at Rs 13,947.50 crores. The project is scheduled for completion within 72 months.
SJVN Stock Soars Over 13% After Winning 2,400 MW Darzo Lui Pumped Storage Project in Mizoram:
Significance for SJVN: This will be SJVN’s first venture in Mizoram, marking a significant expansion of its geographical footprint. The company also mentioned that a formal agreement with the Government of Mizoram is expected to be finalized within the next three months.
Company Background:
Foundation and Operations: SJVN Limited, established in 1988 and headquartered in Shimla, Himachal Pradesh, is a public sector enterprise specializing in power generation. The company manages the entire lifecycle of hydroelectric projects, including design, analysis, operation, planning, development, execution, and maintenance.
- Diversification: While initially focused on hydroelectric power, SJVN has diversified into thermal, solar, and wind energy sectors. It oversees major projects like the Nathpa Jhakri and Rampur hydro power stations and is actively pursuing numerous new initiatives across India.
- Market Presence: According to the Bombay Stock Exchange (BSE), SJVN’s market capitalization is Rs 60,636.74 crore, placing it in the BSE500 category.
Market Reaction: At 9:51 AM on July 26, shares of SJVN were trading 9.40% higher at Rs 154.20 per share. In comparison, the BSE Sensex was trading 0.41% higher at 80,365.39 levels, highlighting the positive market response to SJVN’s announcement.
Conclusion:
This remarkable rise in SJVN’s stock price underscores investor confidence in the company’s growth prospects, particularly in the renewable energy sector, following the strategic allocation of the Darzo Lui Pumped Storage Project.
FAQ:
Q1: Why did SJVN’s stock price rally on July 26, 2024?
A1: SJVN’s stock price surged by 13.23% on July 26, 2024, following the announcement that the Government of Mizoram awarded the company the 2,400 MW Darzo Lui Pumped Storage Project. This significant project allocation boosted investor confidence, leading to the stock rally.
Q2: What is the Darzo Lui Pumped Storage Project?
A2: The Darzo Lui Pumped Storage Project is a 2,400 MW energy project allocated to SJVN by the Government of Mizoram. It features eight 300 MW units and is designed as an On-stream Closed Loop Type pumped storage facility. The project aims to generate approximately 4,993.20 million units (MU) of energy annually.
Q3: What are the specifics of the project’s energy generation and requirements?
A3: The Darzo Lui PSP is expected to generate about 4,993.20 MU of energy annually, based on a 95% plant availability. It will require an estimated 6,331.66 MU of input energy annually for pumping water to the upper reservoir, also assuming 95% plant availability.
Q4: How much will the Darzo Lui project cost and when will it be completed?
A4: The total estimated cost for the Darzo Lui project, including interest during construction (IDC) and financing costs as of April 2023 prices, is Rs 13,947.50 crores. The project is scheduled for completion within 72 months.
Q5: Why is this project significant for SJVN?
A5: This project marks SJVN’s first venture in Mizoram, expanding its geographical footprint and reinforcing its position in the renewable energy sector. The allocation of such a substantial project also reflects the company’s growth prospects and strategic expansion.
Q6: What is SJVN Limited and what are its main operations?
A6: SJVN Limited, founded in 1988 and headquartered in Shimla, Himachal Pradesh, is a public sector enterprise specializing in power generation. The company handles the entire lifecycle of hydroelectric projects, including design, analysis, operation, planning, development, execution, and maintenance. It has diversified into thermal, solar, and wind energy sectors.
Q7: What are some of the major projects managed by SJVN?
A7: SJVN oversees major projects such as the Nathpa Jhakri and Rampur hydro power stations. The company is also actively pursuing numerous new initiatives across India, expanding its portfolio in the renewable energy sector.
Q8: How did the stock market react to SJVN’s announcement?
A8: Following the announcement, SJVN’s shares were trading 9.40% higher at Rs 154.20 per share at 9:51 AM on July 26, 2024. In comparison, the BSE Sensex was trading 0.41% higher at 80,365.39 levels, indicating a strong positive reaction from the market.
Q9: What is the market capitalization of SJVN?
A9: As per the Bombay Stock Exchange (BSE), the market capitalization of SJVN is Rs 60,636.74 crore, placing it in the BSE500 category.
Q10: When is the formal agreement with the Government of Mizoram expected to be finalized?
A10: SJVN has indicated that a formal agreement with the Government of Mizoram is expected to be finalized within the next three months.
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