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SJVN Ltd

SJVN Ltd is one of India’s leading power generation companies, specialising in hydroelectric power. Since its inception, SJVN has grown into a diversified player in the energy sector, with a strong focus on both conventional and non-conventional forms of power generation. The company’s vision is to become a fully diversified transnational power sector enterprise, contributing significantly to India's energy needs and expanding its footprint across different forms of power generation, including wind, solar, and thermal energy, as well as power transmission.

SJVN's Establishment and Early Years

SJVN Ltd was incorporated on May 24, 1988, as Nathpa Jhakri Power Corporation Pvt Ltd. The company was initially established as a joint venture between the Government of India and the State Government of Himachal Pradesh. Its primary mandate was to plan, investigate, organise, execute, operate, and maintain hydroelectric power projects, with a focus on utilising the immense hydro potential of the Sutlej River and other water bodies in the region.

In November 1988, a notable change occurred when the word "private" was removed from the company’s name, altering it to Nathpa Jhakri Power Corporation Ltd. This change reflected the company’s growing stature and the public nature of its operations. Three years later, in August 1991, the company took over the construction and operation of the Nathpa Jhakri Hydroelectric Power Station (NJHPS) from the Himachal Pradesh State Electricity Board (HPSEB).

Early Expansion and Rebranding

By 2002, SJVN had achieved significant milestones in the construction of its flagship project, the NJHPS. On September 17, 2002, the company rebranded itself from Nathpa Jhakri Power Corporation Ltd to Satluj Jal Vidyut Nigam Ltd (SJVN), reflecting its operations around the Sutlej River. In October 2003, the company commissioned its first hydroelectric unit of 250 MW at NJHPS, marking the beginning of power generation from its largest project.

The company’s expansion continued in 2004 when the Government of Himachal Pradesh allocated the Luhri Hydroelectric Project to SJVN. The company was tasked with preparing a detailed project report (DPR) for this major venture. In the same year, SJVN signed an implementation agreement with the government for another project, the Rampur Hydroelectric Project (RHEP).

Expansion into Other States and Projects

SJVN's ambition to expand its footprint beyond Himachal Pradesh became evident in 2005 when it signed an agreement with the Government of Uttarakhand. The agreement entailed the execution of three major hydroelectric projects: the Devsari Hydro Electric Project (300 MW), the Naitwar Mori Hydro Electric Project (33 MW), and the Jakhol Sankri Hydro Electric Project (33 MW). These projects were to be executed on a Build, Own, and Operate (BOO) basis, further establishing SJVN’s reputation as a reliable and efficient power generator.

In 2008, SJVN was granted the prestigious Mini Ratna Category I status by the Government of India, recognizing its consistent operational and financial performance. The same year, SJVN signed a Memorandum of Understanding (MoU) with the Government of Nepal for the Arun III Hydro Electric Project. This marked the company’s first foray into international power generation, signifying its transnational aspirations.

Rebranding and Further Growth

On September 10, 2009, SJVN underwent another transformation, changing its name from Satluj Jal Vidyut Nigam Ltd to SJVN Ltd. This change reflected the company’s growing operations beyond the Sutlej River and its ambitions to become a pan-Indian and transnational power company. Along with the name change, SJVN also became a public limited company, further increasing its visibility and credibility in the energy sector.

One of the most significant developments during this period was SJVN’s entry into a joint venture for the implementation of the 1500 MW Tipaimukh Hydro Electric Project in Manipur. The company took on equity participation to the extent of 26%, showcasing its willingness to collaborate on large-scale projects. Furthermore, SJVN was entrusted with updating and preparing DPRs for two major hydroelectric projects in Bhutan—the 900 MW Wangchu Hydro Electric Project and the 486 MW Kholongchu Hydro Electric Project—further solidifying its international presence.

Listing on the Stock Exchange and Major Milestones

SJVN made a significant leap in its corporate journey when its shares were listed on May 20, 2010. The company's Initial Public Offering (IPO) was priced at Rs 26 per share, and it debuted on the Bombay Stock Exchange (BSE) at Rs 28, marking a successful entry into the stock market.

In July 2013, the company expanded into thermal power generation by acquiring Buxar Bijlee Company Private Limited. This acquisition was part of an MoU signed with the Bihar government for setting up a 1320 MW supercritical thermal power project in Buxar district. To support the project, SJVN was allocated 486 MT of coal reserves from the Deocha Pachami Coal Block, one of the largest coal reserves in West Bengal.

In January 2014, SJVN entered into a joint venture with five other Public Sector Undertakings (PSUs) to develop the world’s largest 4000 MW Ultra Mega Solar Power Project in Rajasthan. This project marked SJVN’s serious entry into renewable energy, laying the foundation for its diversification into solar and wind power. SJVN’s equity participation in this ambitious project was 16%.

Hydroelectric Project Completions and New Ventures

SJVN achieved a major milestone in March 2014, with the commencement of power generation at the 412 MW Rampur Hydro Electric Project (RHEP) on the Sutlej River. This project was a significant addition to the company’s portfolio, generating 1770 million units of electricity annually. A portion of this power was allocated to Himachal Pradesh, SJVN’s equity partner, while the rest was supplied to northern grid states, including Haryana, Punjab, Rajasthan, and Uttar Pradesh.

In April 2014, SJVN signed an MoU with Bhutan’s Druk Green Power Corporation Limited (DGPC) for the development of the 600 MW Kholongchhu Hydroelectric Power Project in Bhutan. This project was to be implemented by a joint venture company and further strengthened SJVN’s international presence.

In May 2014, SJVN made a significant entry into wind energy by commissioning its 47.6 MW Khirvere Wind Power Project in Maharashtra. This wind project was a key part of the company’s strategy to diversify into non-hydro renewable energy sources.

Further Developments in Renewable Energy and Joint Ventures

In December 2014, SJVN fully commissioned the 412 MW Rampur Power Project, marking its successful completion. The project was a testament to the company’s engineering and operational prowess. Concurrently, SJVN continued its expansion into renewable energy. In January 2015, the company signed multiple MoUs to develop solar and wind energy projects, including a 2 MW solar power plant in Himachal Pradesh and a hybrid renewable energy park in Gujarat.

SJVN’s diversification into coal mining also took a step forward in January 2015 when the company entered into a joint venture with six state power generation companies to mine coal from the Deocha Pachami Dewanganj Horisingha Coal Block in West Bengal. This coal was earmarked for SJVN’s 1320 MW supercritical thermal power project in Bihar.

Overview

As India looks to meet its growing energy demands while transitioning to cleaner, more sustainable energy sources, companies like SJVN will be at the forefront of this transformation. With its strong operational track record, commitment to innovation, and strategic partnerships, SJVN is set to power the nation’s future for years to come.