State-owned power producer SJVN Ltd on Wednesday announced receiving a letter of intent (LoI) for a 500-megawatt solar project in Gujarat. The solar project’s construction cost is estimated at ₹2,700 crore.
In a stock exchange filing, the public sector power producer and distributor said that its renewable energy arm, SJVN Green Energy Ltd (SGEL) has been awarded a Letter of Intent from the Gujarat Urja Vikas Nigam Ltd (GUVNL) for a 500MW solar project in GUVNL Phase–XXI. The 500MW power project comprises 100MW and a 400MW green shoe option.
The company has estimated the tentative cost of construction and development of the said project at ₹2,700 crore and the project will be developed at the GIPCL Solar Park located in Khavda, Gujarat.
SJVN Green Energy bagged the said 500 MW project through the tariff-based competitive bidding process at a price of ₹2.54 per unit on a build-own-operate (BOO) basis in January.
GUVNL will execute the power purchase agreement (PPA) once GERC (Gujarat Electricity Regulatory Commission) adopts the tariff, and the project will then be commissioned within a period of 18 months from when this agreement is signed, which means by November 2025.
Through this project, SJVN will likely be able to generate a total of 1271.07 million units in the first year post-commissioning, and by 25 years, a cumulative energy of 29,245.4 million units will be generated.
Shares of SJVN Ltd were trading 8.8% lower at ₹102.55 apiece on BSE at 2:18 pm.
(Edited by : Ajay Vaishnav)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Election 2024: What rural Delhi wants
May 16, 2024 10:10 PM
Over 50 onion farmers detained in Nashik ahead of PM Modi's visit
May 16, 2024 11:14 AM
Why Google CEO is cautiously optimistic about the election year
May 16, 2024 9:51 AM
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM