SJVN Ltd Secures Rs 7,000 Crore Contract from PSPCL for 1,200 MW Solar Power Project

24 Jul 2023 , 11:30 AM

State-owned SJVN Ltd has accomplished a major feat by securing a contract from Punjab State Power Corporation Ltd (PSPCL) for the development and procurement of 1,200 MW of solar power, entailing an investment of Rs 7,000 crore. The ambitious project will be undertaken by SJVN Green Energy Ltd (SGEL), a wholly-owned subsidiary of SJVN.

Project Allocation: SJVN Green Energy Ltd (SGEL) will take on the development of a 1,000 MW solar project anywhere in India and an additional 200 MW solar project within the state of Punjab, as per the contract signed with PSPCL.

Letter of Intent (LOI) Received: SJVN has officially received the Letter of Intent (LOI) from PSPCL, marking a significant milestone in the procurement of 1,200 MW of solar power.

Tariff Structure: Under the contract, PSPCL will procure 1,000 MW of energy produced from any location in India at a tariff of Rs 2.53 per unit. Additionally, 200 MW of energy produced in Punjab will be procured at a tariff of Rs 2.75 per unit.

Investment and Operation: The development of these solar projects involves a substantial investment of approximately Rs 7,000 crore, and they will be executed on a Build Own and Operate (BOO) basis.

Timeline: The project aims to be commissioned within 18 months from the date of signing the Power Purchase Agreement (PPA) and is expected to be operational by the end of the next year. The PPA between PSPCL and SGEL will be signed shortly for a duration of 25 years.

The successful bidding and acquisition of this contract signify a significant stride in SJVN Ltd’s efforts to contribute to India’s renewable energy capacity. The solar power project will play a crucial role in bolstering the country’s green energy sector and reducing carbon emissions.

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