The project will be developed on the land parcels of BBMB in the states of Himachal Pradesh & Punjab. The project is scheduled to be commissioned by August 2024.

The project has been secured through open competitive bidding at a tariff of Rs 2.63 per unit in the e-reverse auction organized by Punjab Energy Development Agency.

The project will generate 39.42 million units of energy in the first year of operation and the cumulative energy generation over a period of 25 years would be about 917 million units. Power purchase agreement for the power produced from the project has been signed with BBMB for 25 years. Commissioning of this project is expected to reduce 44,923 tonnes of carbon emission.

Separately, SJVN informed India Ratings and Research (Ind-Ra) has affirmed the company's long-term issuer rating at ‘IND AA+' with ‘stable' outlook.

India Ratings said that the successful completion of the under-construction projects within the time and cost estimates, successful tie ups of PPAs, continued high share of operations from the regulated business, and sustained strong operating performance of the completed projects could be positive for the ratings.

However, sustained deterioration in the operating performance, accumulation in the receivables, higher-than-expected capacity expansion in projects without regulated cash flows, leading to a sustained increase in the gross adjusted leverage, on a sustained basis, and/or the inability of the company to tie up PPAs for the upcoming power projects before commercial operations could be negative for the ratings.

SJVN is an Indian public sector undertaking having business interests in hydro, thermal, solar, wind and in power transmission & power trading. It is a joint venture between the Government of India and the Government of Himachal Pradesh.

The company's consolidated net profit declined 55.39% to Rs 271.75 crore on a 32.80% fall in revenue to Rs 674.79 crore in Q1 FY24 over Q1 FY23.

The scrip rose 0.90% to end at Rs 64 on the BSE on Friday.