State-owned SJVN Ltd. on Monday said it has inked a memorandum of understanding with the government of Chhattisgarh for the development of a hydroelectric power system. The 1,800-megawatts pumped storage project in the state's Kotpali region will involve an estimated total investment of Rs 9,500 crore, it said in a release.
"The Kotpali PSP is an off stream closed loop type PSP in Balrampur District of Chhattisgarh with an installed capacity of 1,800 MW designed to generate energy around 3,967 MU," the release stated.
The deal, which was signed by SJVN and Chhattisgarh State Power Generation Co., is expected to play a significant role in enhancing energy security and supporting the transition to a clean and sustainable power sector, it added.
SJVN further noted that the project will provide a major boost to employment, investment, and overall economic development in Chhattisgarh. "Direct and indirect employment benefits expected for 5,000 people during its development phase," it said.
SJVN is also planning to expand its only coal power project under construction in the eastern part of the country, news agency Bloomberg reported last month. The company is looking to add another 800 megawatts at its Buxar project in Bihar, in addition to the 1,320 megawatts being built, Chairman Raj Kumar Chaudhary reportedly said.
SJVN Share Price Data
Shares of SJVN closed 2.87% lower at Rs 85.25 apiece on the BSE, compared to 0.29% decline in the benchmark Sensex. The stock has declined by around 29% over the past 12 months.
Out of five analysts tracking the company, three maintain a 'buy' rating, one recommends a 'hold,' and one suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 13.3%.
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