SJVN Inks MoU with PFC for Financial Assistance of Rs 1.19 Lakh Crore

20 Sep 2023 , 01:22 PM

SJVN Limited, a state-run hydroelectric power producer, has signed a Memorandum of Understanding (MoU) with Power Finance Corporation Ltd. (PFC) for financial assistance of Rs 1.19 lakh crore for various projects, including renewable energy and thermal generation projects.

Under the MoU, PFC will provide term loan financial assistance of up to 70% of the project cost, which may be increased for renewable energy projects on a case-by-case basis.

SJVN has recently bagged an 18 MW solar project from the Bhakra Beas Management Board, which is scheduled to be commissioned by August 2024. The company has also won various renewable projects in Punjab and Assam.

The MoU between SJVN and PFC is a significant development, as it will help SJVN to finance its ambitious expansion plans in the renewable energy sector. The company aims to achieve a generation capacity of 50,000 MW by 2040, of which half is expected to come from renewable sources.

The MoU is also positive for PFC, as it will allow the company to participate in the growing renewable energy sector in India. PFC is one of the leading financial institutions in India providing financial assistance to the power sector.

The shares of SJVN and PFC have gained over 100% in 2023 so far, reflecting the positive outlook for the renewable energy sector in India.