Up against a stiff shot target of becoming a 5000 MW generation company by 2023, SJVN, a public sector power company, awaits approval from the Federal Government for an investment proposal before starting construction work on 382 MW Sunni Dam project on Sutlej River in Himachal Pradesh.
Speaking to the media after holding its AGM on Thursday (29.9.2022) Mr Nand Lal Sharma, chairman-cum-managing director SJVN said, “all clearances for the Rs 2614 crore Sunni Dam project are in place and we are ready to start construction work within a month, should our investment proposal be approved early.”
With a generation capacity of 2016.5 MW, (comprising of 1912 MW Hydro; 97.6 MW Wind Power & 6.91 MW Solar Power), SJVN has a record 16 projects of total 4526 MW capacity in the execution stage. Sunni Dam project would be the 17 project to enter the construction stage.
By leveraging the company’s healthy balance sheet with strong cash. flows, SJVN has laid medium and long term targets of achieving 25,000 MW generation by 2030 and 50,000 MW by 2040.
With a portfolio of 68 projects with a generation capacity of 41,028.4 MW, of which 6 projects are in operation, 16 under construction and 46 under various stages of development, the company looks to raise debt financing for these projects.
A resolution of enhancing the borrowing limit to Rs 40,000 crore was moved at the AGM on Thursday.
Mr Sharma said, “over the next 7-8 years SJVN is poised to make investment of about Rs 1.5 Lakh crores.”
Our medium and long term targets would be met by making investments in renewable energy projects, he added.
Regarding financing of new projects, Sharma said that there would be no need to raise additional equity from the promoters and all investments would be met by internal accruals of the company as it has strong cash flows coming in.
“New projects are being financed on a equity debt ratio of 30:70 or 20:80 basis,” he said.
Work on the 60 MW Naitwar Mori hydropower project in Uttarakhand is nearing completion and the company expects to commission the plant within the current financial year.
Having achieved a capital expenditure of Rs 5,259.39 crore in 2021-22, the company has a CAPEX target of Rs 8,000 crore for the current year.
SJVN was listed on the stock exchanges in the year 2010 and the Government of India holds 59.92% shares, Government of Himachal Pradesh 26.85% shares and the remaining 13.23 % shares are held by the public.
As Editor, Ravinder Makhaik leads the team of media professionals at Hill Post.
In a career spanning over two decades through all formats of journalism in Electronic, Print and Online Media, he brings with him enough experience to steer this platform. He lives in Shimla.
