SJVN Stock Rallies on MoU with Bihar Government
Shares of SJVN jumped 8% on January 1, 2025, following the company’s announcement of a major development project in partnership with the Bihar government. The Memorandum of Understanding (MoU) outlines a ₹5,663 crore investment in the 1,000 MW Hathidah Durgawati Pumped Storage Project (PSP), marking a significant milestone in Bihar’s renewable energy push.
Stock Performance on January 1
The stock traded at ₹111.21 on the NSE at 10:01 am, reflecting an 8% gain. Heavy trading volumes also contributed to the stock’s surge, with two crore shares already traded—far exceeding the one-month daily average of 67 lakh shares. This strong market activity highlights investor confidence in SJVN’s growth trajectory.
Details of the Rs 5,663 Crore MoU
Under the agreement, SJVN will spearhead the development of the 1,000 MW Hathidah Durgawati PSP in Bihar’s Kaimur District. The project will feature a levelized tariff of ₹9.39 per kWh, calculated at February 2024 prices, with a pumping energy rate of ₹3 per kWh. Designed to generate peak daily energy output of 6.325 Million Units (MU) and annual peak energy of 2,308.65 MU, this initiative strengthens SJVN’s foothold in the renewable energy sector.
Project Significance and Employment Opportunities
The Hathidah Durgawati PSP is expected to generate significant socio-economic benefits for Bihar, including the creation of 5,000 direct and indirect jobs. The project is also projected to attract an additional investment of approximately ₹10,000 crore. This collaboration not only reinforces Bihar’s renewable energy infrastructure but also positions the state as a key player in India’s sustainable energy landscape.
SJVN’s Expanding Portfolio
SJVN’s role in Bihar’s energy transformation began in August 2022, when the Ministry of Power appointed the company as the nodal agency for Pumped Storage Projects. In addition to Hathidah Durgawati PSP, the company is managing projects like Telharkund PSP (400 MW), Sinafdar PSP (345 MW), and Panchgotia PSP (225 MW).
Nationally, SJVN is developing over 12,000 MW of power storage projects across Maharashtra, Karnataka, Mizoram, Himachal Pradesh, and now Bihar. The addition of the Hathidah Durgawati PSP further solidifies its commitment to advancing India’s renewable energy goals.
Conclusion
The ₹5,663 crore Hathidah Durgawati PSP marks a significant leap for both SJVN and Bihar in the journey toward renewable energy self-reliance. The surge in SJVN’s stock price reflects strong investor sentiment and confidence in the company’s ability to deliver on large-scale energy projects. As SJVN continues to expand its renewable energy portfolio, the Hathidah Durgawati PSP is set to play a crucial role in shaping India’s sustainable energy future.
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