SJVN Shares Skyrocket: 2 Powerful MoUs with Bihar Govt and Pumped Storage Projects Ignite Investor Confidence

State-owned power producer Satluj Jal Vidyut Nigam Ltd (SJVN) has signed a Memorandum of Understanding (MoU) with the Bihar government to develop the Hathidah Durgawati Pumped Storage Project (PSP). This significant step is expected to bolster energy infrastructure and create substantial employment opportunities in the region.
Project Details and Investment Outlook
The projected 1,000 MW Hathidah Durgawati PSP in Kaimur District, on the Durgawati River, is expected to cost ₹5,663 crore to build. With a levelized pricing of ₹9.39 per kWh, the project intends to produce 6.325 million units (MU) of peak energy per day, or 2,308.65 MU annually. Based on February 2024 pricing levels, this tariff calculation makes the assumption that the pumping energy rate is ₹3 per kWh.
In addition to its energy advantages, the construction of this PSP would generate ₹10,000 crore in investments and direct and indirect jobs for almost 5,000 people, boosting the state’s economy.
SJVN’s Expanding Portfolio
Currently, 12,000 MW of Pumped Storage Projects are being developed in Maharashtra, Karnataka, Mizoram, and Himachal Pradesh by SJVN, a national government-owned organisation. The company’s diverse portfolio, which includes consulting, transmission, hydro, wind, and solar power generating, reflects its focus on sustainable energy.
With a focus on sustainable development and effective energy management, the state-run company is essential to India’s renewable energy objectives. These projects not only support the country’s commitment to achieving net-zero emissions but also enhance energy security by enabling efficient utilization of renewable resources. SJVN’s strategic investments are creating a foundation for economic growth, job creation, and energy independence, making it a driving force in India’s green energy revolution.
Stock Market Reaction
Shares of SJVN experienced a sharp increase once the MoU was announced. On the Bombay shares Exchange (BSE), the shares rose 3% on Wednesday to ₹108. Strong investor optimism was demonstrated by the stock’s 7.57% rise to ₹112.30 on the first trading session of 2025.
In contrast to a two-week average of 4.55 lakh shares, trading volumes on the BSE were noticeably high, with 15.13 lakh shares moved. With a market capitalisation of ₹43,424.24 crore, the counter’s turnover was ₹16.59 crore.
Broader Implications
SJVN’s dedication to assisting India’s energy transition and fostering economic development in developing areas is demonstrated by the signing of this Memorandum of Understanding. SJVN has played a key role in promoting energy storage systems that improve grid stability and make it easier to integrate renewable energy sources as a nodal agency for PSP development.
As of September 2024, the government owned 81.85% of the business, therefore SJVN’s projects are in line with national interests. The corporation is positioned as a major participant in India’s energy market due to its multifaceted approach to energy generation and transportation.
Conclusion
Another significant turning point in SJVN’s path towards sustainable energy production is the Hathidah Durgawati PSP in Bihar. SJVN is a pioneer in the renewable energy industry and continues to establish standards thanks to its smart investments, solid project pipeline, and strong government support.