https://sjvn.nic.in/SJVN, a leading hydroelectric power generation company, recently saw its share price soar after signing a Memorandum of Understanding (MoU) with the Bihar government. The agreement involves the development of the 1,000 MW Hathidah Durgawati Pumped Storage Project (PSP) and other related projects in the state. Let’s delve into the details of this development and its potential impact on SJVN’s growth and the broader energy sector in India.

Key Highlights of the MoU
- Project Overview:
- The Hathidah Durgawati PSP will have an installed capacity of 1,000 MW (4×250 MW).
- The project is designed to generate a daily peak energy of 6.325 Million Units (MU) and an annual peak energy of 2,308.65 MU.
- Estimated Cost and Tariff:
- The project’s estimated cost is Rs 5,663 crore.
- It will feature a levelized tariff of Rs 9.39 per kWh, assuming a pumping energy rate of Rs 3 per kWh, based on February 2024 price levels.
- Employment and Investment:
- Direct and indirect employment opportunities for approximately 5,000 people.
- Total investment in Bihar for PSPs expected to be around Rs 10,000 crore.
- Location and Development:
- Proposed on the Durgawati River in Kaimur district, Bihar.
- Part of a broader initiative to develop Pumped Storage Projects (PSPs) in the state.
SJVN’s Expanding Portfolio
SJVN, established in 1988 and headquartered in Shimla, Himachal Pradesh, is known for its expertise in hydroelectric power generation. Over the years, the company has diversified into thermal, solar, and wind energy sectors. Currently, SJVN is developing about 12,000 MW of PSPs across India, including states like Maharashtra, Karnataka, Mizoram, and Himachal Pradesh.
State | PSP Projects | Capacity (MW) |
---|---|---|
Bihar | Hathidah Durgawati | 1,000 |
Why the Hathidah Durgawati PSP Matters
The Hathidah Durgawati PSP is part of SJVN’s strategic plan to enhance India’s renewable energy capacity and support the transition to a greener energy future. Pumped storage projects are critical for ensuring energy reliability and efficiency, especially as the country’s reliance on renewable sources like solar and wind increases.
- Energy Storage: PSPs store excess energy generated during low-demand periods and release it during peak demand, ensuring a steady energy supply.
- Grid Stability: These projects contribute to grid stability by balancing supply and demand fluctuations.
- Environmental Benefits: PSPs are a clean energy solution, minimizing dependence on fossil fuels.
SJVN Share Performance
Following the announcement of the MoU, SJVN’s share price surged by 5.84%, reaching an intraday high of Rs 110.50 per share on January 1, 2025. This marked a significant recovery after the stock had corrected by 15% over the past three months.
Date | Closing Price (Rs) | Change (%) |
---|---|---|
December 31, 2024 | 104.40 | 0.82 |
January 1, 2025 | 110.50 | 5.84 |
The stock’s positive momentum was fueled by strong trading volumes, with over two crore shares changing hands, significantly higher than the one-month daily average of 67 lakh shares.
The Broader Impact on Bihar
The MoU with SJVN is a major milestone for Bihar, which has been focusing on enhancing its energy infrastructure. The development of PSPs will:
- Boost Economic Growth: With an investment of Rs 10,000 crore, the project is set to stimulate economic activities in the region.
- Job Creation: Generate direct and indirect employment for thousands, contributing to the state’s socio-economic development.
- Energy Security: Enhance Bihar’s energy reliability and reduce dependence on external power sources.
SJVN’s Future Outlook
As the nodal agency for developing PSPs in Bihar, SJVN is well-positioned to capitalize on the growing demand for renewable energy. The company’s focus on innovation and sustainable development is expected to drive its long-term growth.
Conclusion
The surge in SJVN’s share price underscores the market’s confidence in the company’s strategic initiatives and its potential to contribute significantly to India’s renewable energy goals. The Hathidah Durgawati PSP is not just a milestone for SJVN but also a testament to the transformative power of public-private partnerships in driving economic and environmental progress.
Disclaimer: The information provided in this article is for informational purposes only. Please consult a certified financial advisor before making any investment decisions.