SJVN’s Meteoric Rise: 300% Rally as It Expands with 1800 MW Chhattisgarh Project!
On Monday, March 10, shares of power generation company SJVN witnessed a decline in trading, reflecting the broader weak market sentiment on Dalal Street. The dip in stock price came despite a significant development for the company—SJVN signed a memorandum of understanding (MoU) with the Chhattisgarh government to develop the 1800 MW Kotpali Pumped Storage Project (PSP).
This strategic agreement marks a major step in SJVN’s expansion efforts within the renewable and hydroelectric energy sector. The Kotpali PSP is expected to enhance the state’s energy infrastructure, contributing to a more sustainable and efficient power supply.
While the stock faced a decline in Monday’s session, long-term investors have seen substantial gains. Over the past few years, SJVN has delivered impressive returns, positioning itself as a multibagger in the power sector. Despite short-term market fluctuations, the company’s growth trajectory and ongoing projects continue to attract attention from industry observers.
In a recent filing with the stock exchange, SJVN, the public sector undertaking (PSU), announced that it has entered into a Memorandum of Understanding (MoU) with the Government of Chhattisgarh and Chhattisgarh State Power Generation Company Limited (CSPGCL). The MoU is aimed at the development of an ambitious 1800 MW Pumped Storage Project (PSP) at Kotpali, located in the state of Chhattisgarh.
This partnership marks a significant step for SJVN as it expands its footprint in the renewable energy sector, particularly in hydroelectric power generation. The Kotpali PSP is expected to provide crucial support for the state’s energy infrastructure, improving the overall efficiency and stability of the power grid. This project is a part of the broader efforts to harness sustainable energy resources and contribute to India’s growing power demand.
According to the company’s exchange filing, the total estimated investment for the Kotpali Pumped Storage Project (PSP) stands at approximately ₹9,500 crore. This large-scale investment underscores the project’s significance in enhancing the state’s energy infrastructure and supporting India’s renewable energy goals.
Beyond its contribution to power generation, the project is also expected to have a substantial socio-economic impact. During its development phase, it is projected to create direct and indirect employment opportunities for around 5,000 individuals. These job opportunities will span various sectors, including construction, engineering, project management, and auxiliary services, thereby boosting local economic activity and providing a livelihood to many in the region.
The Kotpali PSP aligns with the government’s vision of sustainable energy expansion while simultaneously fostering economic growth through job creation and infrastructure development.
The Kotpali Pumped Storage Project (PSP), located in the Balrampur district of Chhattisgarh, is designed as an off-stream closed-loop system. With an installed capacity of 1800 MW, the project is expected to generate approximately 3,967 million units (MU) of electricity. This advanced energy storage solution is set to play a crucial role in stabilizing power supply, especially as India continues to increase its reliance on renewable energy sources such as solar and wind.
Pumped Storage Projects (PSPs) like Kotpali serve as an essential component of modern power infrastructure by addressing the intermittency issues associated with renewable energy. They function by storing surplus electricity generated during non-peak hours—typically when solar and wind energy production is high—and discharging it during peak demand periods, ensuring a stable and reliable power supply. This makes them an integral part of the evolving energy landscape, supporting grid stability and enhancing overall energy efficiency.
SJVN Share Price Trend
Over the past year, SJVN’s stock performance has been impacted by broader market trends, trading in the red amid overall weakness in the Indian stock market. Despite short-term fluctuations, the company’s stock has demonstrated strong long-term performance. Over a two-, three-, and five-year period, it has delivered multibagger returns, reflecting significant value growth for investors. This long-term upward trajectory highlights the company’s expansion efforts, growing project portfolio, and increasing role in India’s energy sector.
Over the past five years, shares of SJVN have witnessed an impressive rally, surging by 296.90% and significantly outperforming the benchmark BSE Sensex, which recorded a comparatively lower gain of 107.98% during the same period. This remarkable growth underscores the company’s expanding footprint in the power sector and its increasing market value over time.
In addition to its strong five-year performance, the stock has also delivered substantial gains over shorter timeframes. Over the last two years, SJVN’s share price has surged by 161%, while in the past three years, it has risen by 196%, reflecting consistent upward momentum. These gains highlight the company’s ability to generate value despite market fluctuations and evolving industry dynamics.
However, in the latest trading session on Monday, March 10, SJVN’s stock experienced a decline. It closed at ₹85.73 on the Bombay Stock Exchange (BSE), marking a 2.32% drop for the day. The short-term dip comes amid broader market movements and investor sentiment, though the stock’s long-term trajectory has remained positive.
