SJVN Green Energy Forms Joint Venture for Renewable Energy with Assam Power Distribution

On April 18, 2024, SJVN Ltd informed the stock exchanges that the company’s wholly-owned subsidiary had incorporated a Joint Venture company.

Details of the Joint Venture Company

SJVN Ltd’s wholly owned subsidiary, SJVN Green Energy Limited, has incorporated a Joint Venture Company with Assam Power Distribution Company Limited named “SGEL Assam Renewable Energy Limited”. The Certificate of Incorporation, dated April 18, 2024, was issued by the Ministry of Corporate Affairs, Government of India.

SGEL Assam Renewable Energy Limited will belong to the Renewable Energy industry and shall carry out business in the field of Power Generation from all renewable energy sources, including Hydro Power, by setting up power plants. The authorised capital is ₹1000,00,00,000 (Rupees One Thousand Crore only).

SJVN Ltd stated in the exchange filing that the company has got approvals from authorities like NITI Aayog, DIPAM (Department of Investment and Public Asset Management), Ministry of Finance, Ministry of Power, Government of India etc.

SJVN Green Energy Limited will hold 51% of SGEL Assam Renewable Energy Limited.

This joint venture company incorporation with Assam Power Distribution Company is another significant development for SJVN Green Energy Limited in recent times. In March 2024, SJVN Green Energy Limited bagged the 200 MW Solar Project through tariff-based competitive bidding at a tariff of ₹2.66 per unit on a Build Own and Operate (BOO) basis, for which e-RA was conducted on March 02, 2024, by Gujarat Urja Vikas Nigam Limited (GUVNL).

The tentative cost of construction and development of solar project is ₹1,100 crore. The project is to be developed at the Gujarat State Electricity Corporation Limited (GSECL) Solar Park at Khavda.

About SJVN Ltd 

SJVN Ltd. is involved in the power generation business and provides consultancy for hydropower projects. In FY 2023, SVJN reported a net profit of ₹1,363.45 crore and revenue of ₹2,935.41 crore.

On April 19, 2024, the share price of SJVN Ltd opened at ₹125.00, touching the day’s high of ₹126.35 as of 12:16 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.