SJVN gains after Cabinet approves Rs 2,614 cr for Sunni Dam Hydro project

SJVN rose 1.31% to Rs 34.80 after the company announced that the Cabinet Committee on Economic Affairs (CCEA) has approved investment of Rs 2,614 crore for its 382 megawatt (MW) Sunni Dam Hydro Electric Project in Himachal Pradesh.

The power generation company said the project is scheduled to be commissioned within 63 months of the commencement of construction works and shall generate 1,382 million units annually.

The project is being financed on 70:30 debt equity ratio and on completion it will earn 16.50% return on equity for the Company. This will reduce carbon dioxide emissions by 1.1 million tons annually, it added.

The company has aligned its shared vision of 5,000 MW by 2023, 25,000 MW by 2030 & 50,000 MW capacity by 2040 with that of Government of India's target of achieving 50% energy from non-fossil fuel sources by 2030. As a strategic & reliable partner, SJVN plans to play a vital role in clean energy transition of the nation and vision to provide round the clock power to all, the company stated in the press release.

SJVN is an Indian public sector undertaking having business interests in hydro, thermal, solar, wind and in power transmission & power trading. It is a joint venture between the Government of India and the Government of Himachal Pradesh.

On consolidated basis, the company's net profit rose 10.1% to Rs 445.44 crore despite of 0.4% decrease in net sales to Rs 878.48 crore in Q2 FY23 over Q2 FY22.

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