State-owned SJVN bags Rs 70 bn Solar Contract from PSPCL
01 Jul 2023
State-owned SJVN announced that it secured a significant contract from Punjab State Power Corporation (PSPCL) for the development and procurement of 1,200 MW of solar power, requiring an investment of Rs 70 billion.
According to the company's statement, the subsidiary SJVN Green Energy (SGEL) will undertake the development of a 1,000 MW solar project anywhere in the country, while the remaining 200 MW will be developed within the state of Punjab.
The Letter of Intent (LOI) has already been received by SJVN from PSPCL for the procurement of 1,200 MW of solar power. Under the terms of the agreement, PSPCL will purchase 1,000 MW of energy produced from anywhere in India at a tariff of Rs 2.53 per unit, while the 200 MW generated within Punjab will be procured at a slightly higher tariff of Rs 2.75 per unit.
The development of these solar projects will involve an estimated investment of approximately Rs 70 billion, and they will be executed on a Build Own and Operate (BOO) basis.
The projects are expected to be commissioned within 18 months from the date of signing the power purchase agreement (PPA) and are slated for completion by the end of the following year. The PPA, with duration of 25 years, will soon be finalised and signed between PSPCL and SGEL.
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