Shares of SJVN surged by almost a per cent on the NSE after government approval for its proposal to form four Joint Venture companies in India and Nepal
SJVN's shares witnessed a surge of almost a per cent on the National Stock Exchange on Tuesday after the PSU secured approval from the Department of Investment & Public Asset Management (DIPAM), the Ministry of Finance, and the Government of India. The approval pertains to SJVN's proposal to establish four Joint Venture (JV) companies in both India and Nepal, as disclosed in an official filing with the stock exchange.
The company is set to play a prominent role as the primary partner in three of the Joint Venture companies, while its wholly-owned subsidiary, SJVN Green Energy Limited, will take the lead in the fourth JV. "The Company will form a JV with Maharashtra State Power Generation Company Limited to develop 5,000 MW RE Projects. Another, JV will be between the Company, Government of Arunachal Pradesh & Navyuga Engineering Company Limited to execute the development of the 1,878 MW Oju Hydro Electric Project in the state of Arunachal Pradesh. In the third JV, the Company will be collaborating with Nepal Electricity Authority & GMR Energy Limited for implementation of 900 MW Upper Karnali Hydro Electric Project in Nepal. In this JV, the Company & GMR will have equal equity partnership," the exchange filing stated.
Moreover, the company will enter into a Joint Venture with Assam Power Development Company Limited for the development of 1,000 MW Renewable Energy (RE) Projects in the state of Assam.
Last year, SJVN's shares delivered significant returns, exhibiting a multibagger performance with a remarkable surge of nearly 165 per cent, equivalent to 57 points on the National Stock Exchange.