New Delhi: Power Purchase Agreements (PPAs) or Power Sale Agreements (PSAs) remain unsigned for about 10 GW of Renewable Energy (RE) capacity awarded by SJVN Limited. Bhupender Gupta, Chairman and Managing Director (CMD) of SJVN, told investors during the company’s post-results call for the September quarter that the company has so far floated tenders for 19.8 GW, issued letters of award (LOAs) for 13.74 GW, and signed PSAs and PPAs for 3.74 GW. Another 3.75 GW, he said, is expected to be tied up “in the next two months.”
Follow Energy Watch on X
“The problem, frankly speaking, is that there are a lot of tenders coming out in the market, specifically for solar, and there are issues because of the grid connectivity,” Gupta said. “There are transmission line shortages, and because of that, power is not getting evacuated even for commissioned plants.”
“Connectivity is the main issue where people are getting late connectivity — 28, 30, 31 — so that’s why the commissioning target I can’t speak about,” he added when asked to comment on the capacity that SJVN will be able to commission.
Gupta said SJVN is in “stakeholder consultation” with the Ministry of Power, the Ministry of New and Renewable Energy (MNRE) and the bidders to determine how to proceed with projects where LOAs have been issued but PPAs/PSAs have not been signed. “It will take some time, one or two months, and after that there will be more clarity,” he said.
The statement comes against the backdrop of a recent announcement by the MNRE where it said that it will allow cancellation of renewable energy project Letters of Award (LoAs) that have minimal or no prospects of progressing to Power Sale Agreements (PSAs), but only after comprehensive case-by-case due diligence.
SJVN, which currently has 13 operational projects with a total capacity of 3,146 MW, expects to commission around 1.5 GW of solar power projects in FY27, Gupta said.
During the current financial year, the company plans to add around 650 MW of solar capacity, including 320 MW at Bikaner in Rajasthan, 75 MW at Jamui in Bihar, 120 MW in Assam, 100 MW at Nawa in Rajasthan, and 35 MW at Bagodara in Gujarat.
As one of the government’s Renewable Energy Implementing Agencies (REIAs), SJVN plans to float a 1,250 MW battery energy storage tender for Haryana later this year, in addition to a 1,200 MW wind power tender already issued. It is also preparing a tariff-based competitive bidding tender for pumped storage projects. Gupta said the company will meet its annual REIA target for tendering despite the commissioning delays.
Gupta said SJVN expects to begin construction next year on the 3,097 MW Etalin Hydroelectric Project in Arunachal Pradesh, which he described as “the biggest hydro project in India.” “We are in the final stages of getting the environment clearance. We have already received the forest and environment clearance and are in the final stage of acquiring the land, which is a prerequisite to start the construction activity,” he said. “Almost 70 percent of the people have already taken the compensation amount being paid by the state government.”
The 688 MW Attunli project, also in Arunachal Pradesh, is expected to move to the construction stage “by the end of next year,” Gupta added.
SJVN also plans to start work on two major hydropower projects in Nepal — the 680 MW Lower Arun and the 900 MW Upper Karnali — in Q1 FY27. Gupta said, “Now we have two new projects in Nepal, which are big projects that will be going into construction very soon in the first quarter of next financial year. One is Lower Arun, which is 680 megawatt, and second is Upper Karnali, which is 900 megawatt. So they are very good and attractive with attractive tariff. So there should not be any issue for sale of power.”
SJVN has been entrusted with implementing the PM-Surya Ghar: Muft Bijli Yojana across Himachal Pradesh, Punjab and Arunachal Pradesh, and installing rooftop solar systems on government buildings under 18 ministries.
“The process of empanelment of vendors for government buildings has been completed and implementation is in progress. So far, a total capacity of 21.1 MW has been awarded and execution of work is underway,” Gupta said.
Gupta said Unit 1 (660 MW) of the 1,320 MW Buxar Thermal Power Project has completed 72-hour full-load testing and is set to be declared commercially operational “within a day or two.” The second unit is expected to follow “by January or February next year.” Once fully operational, the Buxar plant will generate 9,826 million units annually, with 85 percent supplied to Bihar and the balance to the northeastern grid.
Gupta said SJVN remains financially stable and focused on timely completion of its under-construction assets. “We are slightly trying to consolidate our position as of now, mainly the under-construction projects which are there, and we just want to complete them fast so that we can start generating the revenue,” he said.
Follow Energy Watch on LinkedIN
“I don’t foresee any challenges as of now regarding the finances or debt servicing,” he added. “Everything is on track, and we will be growing every year with better revenue, better profit, and better capacity addition.”
