SJVN gains on inking MoU for hydro-power project in Nepal

SJVN rose 3.89% to Rs 29.35 after the company said that it has signed memorandum of understanding (MoU) with Investment Board of Nepal (IBN) in Kathmandu Nepal for the development of 679 MW Lower Arun hydroelectric project (HEP).

IBN is a high-level government body chaired by the Right Honorable Prime Minister of Nepal. IBN functions as a central fast-track government agency established to facilitate economic development in Nepal by creating an investment-friendly environment, mobilizing and managing domestic as well as foreign investments.

SJVN bagged the project through international competitive bidding (ICB), which involved big players. The Lower Arun Hydro Electric Project is located in Sankhuwasabha and Bhojpur Districts of Nepal. The project will not have any reservoir or dam and will be a tail race development of 900 MW Arun-III HEP.

The project will have four francis type turbines. On completion, the project will generate 2,970 million units of electricity per annum. The project is scheduled to be completed in four years after commencement of construction activities. The project has been allocated to SJVN for 25 years on BOOT (build, own, operate and transfer) basis.

SJVN is a Mini Ratna, Category-I and Schedule 'A' CPSE under administrative control of Ministry of Power, Govt. of India. The company's present installed capacity is 2016.51 MW and aims to be 5000 MW company by 2023. It has presence in various sectors of energy generation which includes hydro, wind, solar & thermal. The company also has presence in the field of Energy Transmission.

The company's consolidated net profit rose 56.08% to Rs 619.06 crore on a 14.77% decline to Rs 463.77 crore in Q4 FY21 over Q4 FY20.

Powered by Capital Market - Live News