SJVN Signs Two MoUs With Maharashtra Government For Energy Projects

SJVN Ltd. has signed two Memorandums of Understanding with the Government of Maharashtra, aimed at enhancing the state’s energy infrastructure, according to an exchange filing.

The agreements were finalised on Friday in Mumbai, in the presence of Deputy Chief Minister and Energy Minister Devendra Fadnavis.

The first MoU, established between SJVN and the Department of Water Resources, focuses on the development of five Pumped Storage Projects with a total capacity of 8,100 MW.

SJVN’s Chairman and Managing Director, Sushil Sharma, signed the agreement alongside Deepak Kapoor, Additional Chief Secretary of the Water Resources Department.

The second MoU involves the Maharashtra State Power Generation Company for a 505 MW Floating Solar Project at Lower Wardha Dam. This agreement was also signed by Sharma and Dr. P. Anbalagan, chairman and managing director of Mahagenco.

Fadnavis commended both SJVN and Mahagenco for their efforts, stating that these projects represent a crucial step forward for Maharashtra's energy landscape and assured the government’s support for their timely execution.

The Floating Solar Project will be developed in two phases. The first phase will involve 100 MW, while the second will encompass 405 MW. This phased approach aims to optimise existing power evacuation infrastructure and provide a sustainable energy source for the region.

The 8,100 MW Pumped Storage Projects will include several facilities, such as the 800 MW Kolmondapada and 2,000 MW Jalvara, among others. These projects are expected to enhance energy storage capabilities, stabilise the grid, and meet peak electricity demand, thereby ensuring reliable energy for Maharashtra.

The total estimated investment for these projects is around Rs 48,000 crore, with projections to create approximately 8,400 direct and indirect jobs. Additionally, the initiatives are set to support eco-tourism and skill development, benefiting local communities, the exchange filing noted.

Shares of SJVN Ltd. rose as much as 3.06%, before paring gains to trade 2.53% higher at Rs 129.18 apiece, as of 11:54 a.m. This compares to a 0.23% advance in the NSE Nifty 50.

The stock has risen 84.81% in the last 12 months. Total traded volume so far in the day stood at 1.3 times its 30-day average. The relative strength index was at 44.

Out of six analysts tracking the company, three maintain a 'buy' rating, one recommends a 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 15.3%.