In an interaction with Akhileshwar Singh Director (Finance), SJVN Limited
In A Powerful Position
SJVN, formerly known as Satluj Jal Vidyut Nigam, is an Indian public sector undertaking involved in hydroelectric power generation and transmission. It was incorporated in 1988 as Nathpa Jhakri Power Corporation, a joint venture between the Government of India and the Government of Himachal Pradesh. In this interview, Director (Finance) Akhileshwar Singh outlines SJVN’s present status, capacities, new projects and outlook for the future
In Q4FY23 the company’s net sales increased by 55.93 per cent on year-on-year (YoY) basis while the net profit increased by 830.80 per cent. What were the factors that contributed to the company’s performance?
During the fourth quarter of FY 2023, sales increased due to additional tariff allowed by the Central Electricity Regulatory Commission (CERC) in respect of Nathpa Jhakri Hydro Power Station (NJHPS) and Rampur Hydro Power Station for the period 2014-19. The profit increased due to approval of tariff from the back date and arrear billing amounting to ₹348 crore in respect of Rampur Hydro Power Station (RHPS). Further, there was a gain amounting to ₹114 crore received by the company on sale of equity shares in Kholonguchhu Hydro Energy Limited (KHEL) to another joint venture partner, Druk Green Power Corporation (DGPC) Bhutan.
Can you shed some light on Company’s Solar Energy SJVN Green Energy?
Since its incorporation on 30th March 2022, SGEL is growing with a very fast pace and is presently having a portfolio of 28 projects of 4.7 GW which will be commissioned in next 1-2 years. SGEL is targeting to add 1.5 – 2.0 GW annually so as to achieve RE portfolio of 15-16 GW by 2030 which shall contribute towards 50 per cent reduction in carbon emission by 2030. The average tariff of these RE projects is about ₹2.80/unit.
What is your outlook on the Indian Power Generation and Distribution Sector?
The current power generation is dominated by fossil fuel-based power contributing up to 57 per cent of total generation. Out of 417 GW installed capacity as of 30.06.2023, 238 GW is from thermal power. Solar and wind power together contribute 25% of installed capacity, at 109 GW
India is a developing country but our per capita power consumption is less than that of even many developing countries like Brazil or South Africa. There will be unprecedented growth potential in power demand in coming years, which will assure steady business growth for companies in clean energy business like SJVN.
The future of Distribution Sector will also be bright in view of the reforms and performance rating initiatives taken by GoI.
What are the capacities and commissioning timelines of the five hydro projects that are under construction?
SJVN has set a target for generation capacity of 5 GW by 2024, 25 GW by 2023, 50 GW by 2040 and 60 GW by 2047. The commissioning timelines for these five under-construction projects are as follows:
∎ 60 MW Naitwar Mori Hydro Electric Project (NMHEP), Uttrakhand by August 2023.
∎ 900 MW Arun III Hydro Electric Project, Nepal by June 2024.
∎ 66 MW Dhaulasidh Hydro Electric Project, Himachal Pradesh by November 2025.
∎ 210 MW Luhri Hydro Electric Project, Himachal Pradesh by January 2026.
∎ 382 MW Sunni Dam Hydro Electric Project, Himachal Pradesh by April 2028.
Dhaulasidh HEP, Luhri HEP and Sunni Dam HEP are having dam toe powerhouse without any head race tunnel construction. Thus, these projects are expected to be completed without any time over-run.
What is your earnings’ outlook for FY24?
In FY24 sales and profit will be based on generation from the existing projects and from new projects which will be commissioned during the year. The numbers are likely to increase in FY24.