SJVNL’s Market capitalization went up to 28750 Cr in the last 25 years 

The Public Sector joint company Satluj Jal Vidyut Nigam Limited registered a steep rise in Market Capitalisation in the past 25 hours as publicly listed mini blue chip firms claimed growth of share value by 225 percent in the last three years.

This was stated by the Chief Managing Director of SJVNL Mr Nand Lal Sharma while addressing a media person on Saturday. He said that the berth of the company shows an increase in capitalization after the commissioning of the first hydropower Project in Himachal Pradesh in 2002 as Market Capitalisation as of today is 28750 Cr. The firm was listed on the National Stock Exchange 13 years ago and its share value increased by 225 pc in the last three years. The public equity in the company is around 18 percent and 50 percent of profit was provided to the shareholders every year in the last 25 years of its existence the firm has paid a dividend of more than 9000 Cr to its shareholders.

The firm has total assets of around Rs 23000 Cr of which the investment of the Central government is around Rs 6600 Cr, the Himachal Pradesh Government Rs 1055 Cr, and public investment in the form of equity whare is Rs 2541 Cr. He said that the Firm would provide direct dividend tuen to Rs 980 Cr in this financial year. He said that the state of Himachal Pradesh invested only Rs 1055 Cr and had an equity share of around 28 percent ( of  Rs 8000 Cr value) in the SJVNL. This was separate from the free power and supply of Rs 2.50 per unit to the state of Himachal.

Revealing the astronomical leap of capitalisation on and capital expenditure of SJVNL Mr Sharma said that the value of a share of SJVNL was Rs 32.56 on April 1, 2023, which is around Rs 73 per share currently which shows that shares of the company registered growth by 225 pc in three years. Shareholders’ and investors’ future is very bridged He said that the growth of the company helped the investors to increase the share value and the investment made by them added to their value creation.

He said that the Union government has deviated its equity in SJVNL from 75 pc to 55 pc as it disinvested its 4.9 percent equity. Now public equity in the company has increased from ten percent off-road to 18 percent. The equity of Himachal Pradesh has remained at 26.8 pc.

Mr Sharma joined SJVNL 15 years ago and said that capital expenditure (Capex) was only around Rs 400 Cr in year 2014 however in nine years it went up to Rs 8340 Cr per annum and the firm is going to increase the Capex up to Rs 10,000rs target per annum. The Public Sector firms which are earning profit from their revenue and power generation also decided to make an average investment of Rs 200000Cr. He said that the firm is working on several new power projects and till 2025 it has decided to make a total investment of Rs 2.55 lakh Crore and after three years it would make around RS 20000 Cr Capex. He said that the SJVNL has not only achieved milestones in the field of power generation but will play a major role in making India a five trillion economy by 2025.

The firm is providing employment avenues of direct employment to 2000 people and indirect or associate employment to 25000 employees and the expansion in a generation would increase the staff strength also.

He said that recent rainfall rendered unprecedented loss to the Himachal Prdesh as heavy rainfall was recorded in two major spells from July 8 to 9 and August 20 to 23.. He said that compared to another power project the loss to SJVNL assets is negligible. He said that SJVNL has suffered a loss in terms of power generation as it suspended its operation during the increase of silt or turbidity in the Satluj River as the rise in water level has posed a danger to its run of river Dam projects. He said that since its project is designed to bear the silt level up to 5000 ppm Level. Since the rain crossed the benchmarks 5k ppm in turbidity it has to suspend generation for a few days. Power companies have set up the water level and silt reading labs to measure the slit label at Khab and Karchum and it could avert the danger that may occur to its assets. 

Replying to a query about the prospect of continuing to sustain the profits from the power projects CMD said that the 1500 MW Nathpa Jakhari power project would not be handed over to the State of Himachal Pradesh after 40 years of its ending the power purchase agreement and its profits would not decline as the firm was handed over the Nathap Jakhari project on the Build Operate Own Manage basse(BOOM).

He said that hydropower projects compared to fossil fuel power projects have a long life span as the Hydropower life span is more than 100 and 150 years. He said that the first hydro project was designed in the UK in 1878 and it continued to give power. He said that the Chaba Power project is about 110 years old in Himachal Pradesh and the Shanan Power project is about 100 years old.

He, however, said that another power project based on fossil fuel is designed for a life span of 25 years and the uncertainty in the revenue remained with the thermal power project as it is fully dependent on the supply of fossil fuel. He said that natural calamities affect the future of hydropower projects however given the experience of SJVNL the landslides incidents have come down near its power projects however given the challenge of global warming and climate change need to study before setting up projects.

Replying about the new energy policy of the Himachal Pradesh Government and the demand of the state to hand over the power project after 40 years and provide free power and royalty to the state of Himachal Pradesh, He said that the policy of setting up a new hydropower project was proactive. He said that the policy of Power generation of Himachal Pradesh is being followed by the other states. CMD said that he would not comment on the issue of power cess as the matter is pending in the Himachal Pradesh High Court.

The SJVNL has a total installed capacity of 5000 MW from both hydro and fossil power plants till the end of 2023. The Plant Achievement Factor(PAF) is above 106 percent as against designed energy of 8705.88 million units the company generated about 9335.163 mu pre-annum. The Nathpa Jakhari Power project has a single-day generation of around 39.53 mu, Rampur 10.90 mu,  

The company has commissioned 1912 MW of two hydro projects, a 179.5 MW renewable power project, and in the current financial year, 1455 MW and 37 km transmission lines are likely to be commissioned.

Five hydro projects of 1618 MW, one Thermal project of 1320 MW eight renewable energy plants of 1500 MW, and two transmission lines of 254 km are under construction.

He said that the target is set to achieve 15 yrs plan as the company would achieve 5000 MW installed capacity this year till 2030 it would have 25000 MW power project, and 50000 MW in 2050.

The target is also to achieve a 400 MW power project in one year and 1200 MW in three years.

He said that the portfolio of the company would grow from 6000 to 8000 MW. The company is likely to achieve an increase in installed capacity by 1500 MW by next year and in three years it will add 3300 MW of hydro and fossil fuel projects.

He said that to achieve the target fixed by the company it had examined the power project of capacity by one lakh MW.

He said that the company is competing with big power companies in Japan and China as it has made complete diversification in its core sector currently working in a total of 16 states and three countries.

He said that Arun stage one is in an advanced stage of commissioning of the first phase and all turbines would be commissioned by 2025 India is also working on a 10000 MW power project in Nepal. He said that In Asia India would become the first country to import power from Nepal to Himachal Pradesh in the next few years.