SJVN stock skyrockets 11% after PSU bags Rs 13,000 crore pumped storage project in Mizoram

Over the past year, SJVN shares surged 168 percent, more than doubling investors' money. In comparison, Nifty delivered returns of around 23 percent during the same time period.

Shares of SJVN Ltd. zoomed over 11 percent on July 26, a day after the company announced that it received a Letter of Intent (LoI) from the Government of Mizoram for the allotment of the Darzo Lui Pumped Storage Project.

This marks SJVN's first venture in the state. The Darzo Lui Pumped Storage Project, with an installed capacity of 2,400 megawatts, is proposed to be developed across Darzo Nallah, a tributary of the Tuipui River.

The project has an estimated completion cost of Rs 13,947.50 crore, including IDC (interest during construction) and financing costs at the April 2023 price level, the company said in an exchange filing.

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The project is designed as an on-stream closed-loop pumped storage project, consisting of eight units of 300 megawatts each.

It is projected to generate an annual energy output of 4,993.20 million units, assuming 95 percent plant availability. The annual input energy required for pumping water to the upper reservoir is estimated at 6,331.66 million units, also based on 95 percent plant availability.

SJVN expects to complete the project within 72 months (Six years). An agreement formalising this venture is expected to be signed within the next three months between SJVN and the Government of Mizoram.

At 9:17 am, SJVN shares were trading nearly 11 percent higher at Rs 156.45 on the National Stock Exchange (NSE). Over the past year, SJVN shares surged 168 percent, more than doubling investors' money.

In comparison, Nifty delivered returns of around 23 percent during the same time period. In the last five years, the stock has delivered stellar returns of 547 percent.

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