SJVN, a prominent company, makes noteworthy progress with multiple achievements: signing a Memorandum of Understanding (MoU) with REC – EQ Mag
The state-owned power generation company, SVJN Ltd, has announced in three separate exchange filings that it has signed an MoU with REC, has received approval from its board to acquire an additional stake in Cross Border Power Transmission Company, and its subsidiary SJVN Green Energy has received an LOI from Punjab State Power Corporation.
SJVN has inked a Memorandum of Understanding (MoU) with REC Ltd for financing projects of its subsidiaries and joint ventures worth up to Rs 50,000 crore.
According to the exchange filing, REC will provide financial assistance to set up new Power Generating Stations based on conventional and renewable energy sources and new technology projects like electric vehicles, battery storage, hydrogen cells storage, green hydrogen/ammonia, and manufacturing units for green projects.
The MoU covers the construction of evacuation and transmission projects and includes strengthening or improving the existing transmission system.
SJVN Green Energy Ltd (SGEL), a wholly owned subsidiary of SVGN, received a letter of Intent (LOI) from Punjab State Power Corporation Ltd (PSPCL) on Friday for the procurement of 1200 MW Solar Power.
SGEL will develop a 1000 MW project anywhere in the country and balance 200 MW in Punjab on Build Own and Operate (BOO) basis. The tentative cost of development of the projects is around Rs 7,000 crore.
The project is expected to be commissioned by December 2024, with the Power Purchase Agreements (PPA) being signed between PSPCL and SGEL for 25 years. The commissioning of this project is expected to reduce 34.2 Lakhs Tonnes of carbon emission.
SJVN’s board, in its meeting on Saturday, approved the acquisition of 77,30,227 equity shares in Cross Border Power Transmission Company Limited (CPTC) at an average price of Rs 24.05 apiece. The acquisition deal, valued at approximately Rs 18.60 crore, will be completed in cash.
CPTC is a joint venture incorporated in 2006, and SVJN currently holds a 26% stake in the company. The company builds, maintains and operates transmission systems between India and neighbouring countries like Nepal, Bhutan, Bangladesh, Myanmar, Sri Lanka, and Pakistan to export and import electricity, transmit data and other related business.