SVN bags Rs 7,000 crore contract from PSPCL

On Saturday, the state-owned SJVN Ltd said it has bagged a contract from Punjab State Power Corporation Ltd (PSPCL) for the development and purchase of 1,200 MW of solar power, worth an investment of Rs 7,000 crore. SJVN Green Energy Ltd, SGEL, a wholly owned subsidiary of SJVN will develop 1000 MW solar project anywhere in the nation and balance 200 MW in the state of Punjab, a company statement said. SJVN received the PSPCL letter of intent for the purchase of 1,200 MW of solar power. The PSPCL will supply 1,000 MW energy produced anywhere in India at a tariff of Rs.2.53 per unit, while 200 MW electricity produced in Punjab will be at a rate of Rs.2.75 per unit. As a result, the development of these projects necessitates an investment of around 7,000 crore, which will be built on the basis of build own and operation BOO. The project is commissioned in 18 months and expected to be commissioned by the end of next year. The PPA is expected to be signed for 25 years between PSPCL and SGEL.