PFC may fund 70% of Rs 1.19 lakh crore renewable energy projects

State-run hydroelectric power producer SJVN has signed a Memorandum of Understanding (MoU) with Power Finance Corporation Ltd. (PFC) for financial assistance for projects.

The MoU pertains to various diversified portfolio of projects including majorly renewable energy projects and thermal generation projects.

Overall cost of the projects that are to be set up is nearly Rs 1.19 lakh crore. As per the MoU, the term loan financial assistance is proposed tentatively at 70 percent of the project cost.

The same may be increased for renewable energy projects as per the individual project requirements.

The project will be developed on the land parcels of BBMB in Himachal Pradesh and Punjab and is scheduled to be commissioned by August 2024. Once commissioned, 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 917 million units.

Shares of both SJVN and PFC have gained over 100 percent in 2023 so far. This the first instance for both companies where their stock price has doubled in a calendar year.

SJVN shares have recovered from the day’s low and are currently trading 5 percent higher at Rs 79.85. Shares of PFC are also trading 0.7 percent higher at Rs 289.25.