Shares of SJVN Limited soared by 13.3% to ₹160 each in early trading on Friday, following the company’s announcement of a significant project acquisition. The surge in stock price comes in response to SJVN’s successful bid for the Darzo Lui Pumped Storage Project, marking a major expansion into the northeastern state of Mizoram.
The Darzo Lui Pumped Storage Project is estimated to cost ₹13,947.50 crore, which includes interest during construction and financing costs as per April 2023 price levels. This ambitious project will feature an on-stream closed-loop pumped storage facility with a total installed capacity of 2,400 megawatts. The facility will consist of eight units, each with a capacity of 300 megawatts.
Expected to generate approximately 4,993.20 million units of energy annually, the project is designed to achieve a 95% plant availability. This substantial energy output will significantly contribute to the region’s power infrastructure and SJVN’s portfolio.
The project, which will be implemented across the Darzo Nallah, a tributary of the Tuipui River, is poised to bolster SJVN’s position in the renewable energy sector. It marks the company’s first venture in Mizoram and represents a strategic move to diversify its energy assets.
SJVN’s recent acquisition is aligned with its broader strategy to expand its footprint in the renewable energy sector and leverage large-scale projects to drive growth. The company’s announcement has generated considerable interest from investors, reflecting confidence in the project’s potential to deliver substantial returns and enhance energy security in the region.
In related news, the Asian Development Bank (ADB) has recently sanctioned a $240.5 million loan to support the expansion of India’s rooftop solar systems, underscoring the growing momentum in the renewable energy sector.
SJVN’s acquisition of the Darzo Lui Pumped Storage Project not only highlights its commitment to large-scale energy projects but also signals a strong growth trajectory for the company in the coming years.
I am Aparna Sahu
Investment Specialist and Financial Writer
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