Chairman's Interview | Chairman's Corner | About Us | SJVN Limited
CMD's Interview for Hindustan Times, New Delhi

Q. (1) In Satluj river silt level is higher during monsoon. Most of the hydel plants are affected during this time. How was the performance of your Nathpa   Jhakri  Hydro Power Station ?


The peak monsoon and high silt period is July & August.  But with efficient water and machine management the generation was not affected at India's largest 1500 MW Nathpa Jhakri Hydro Power Station.  Rather it established an all time record of power generation during July, 2014 by producing 1191.217 million units of electricity against the MoU target of 1083 million units.  During July, 2014 the power station operated at over 1600 MW during all the 31 days of the month against the installed capacity of 1500 MW.  The earlier highest record was 1186.5 million units achieved during July, 2012.  The power station thus operated beyond the optimum installed capacity during all the days of July, 2014.  During the month, the highest generation achieved was on 8th July at 38.941 MU against the installed capacity of 36 MU.  The Plant Availability Factor (PAF) achieved during the month was 108.3%.  As on 26th August 2014, the power station has already generated 4325 MU of electricity against the MoU target of 4202 MU.


Q. (2)  Is the power station operating at optimum plant load capacity?


During the financial year 2013-14 our 1500MW Nathpa Jhakri Power  Station continued its excellent performance.  The Plant Generated 7193 MUs as against 6778 MUs generated during the previous year which was the second highest cumulative generation from the plant since its commissioning in 2003. During the same period, the plant also achieved the highest ever Plant Availability Factor of 105.75% against a normative requirement of 82%. On 29th May 2013, the NJHPS achieved a record daily generation of 39.147 MU.


Q. (3)  And what was the financial performance of SJVN during the last financial year ?


During the financial year 2013-14 our company earned a net profit of ` 1114.63 crore which was 6% higher than that of the FY 2012-13 at  ` 1052.34 crore and also the highest since inception of the Company.  Revenue of the Company also zoomed to ` 2110.72 crore against ` 1927.36 crore during the previous year.  The Board of Directors of the Company has recommended a dividend payout @ ` 0.98 per share. The net dividend payout (excluding taxes) for the FY 2013-14 comes to  ` 405.39 crore which is the highest dividend paid so far.  The dividend yield is also one of the highest amongst the peer power PSUs.


Q. (4)  How the Company fared financially during the first quarter of the current financial year ?


During the financial year 2014-15, SJVN targets to generate 7920 MUs of power under "Excellent” parameters, out of which 6900 MUs is targeted from Nathpa Jhakri Hydro Power Station, 950 MUs from Rampur Hydro Electric Power and 70 MUs from Khirvere Wind Power Project. The target revenue realization from sale of energy is Rs.1820 crore from these Projects collectively.


During the first quarter of FY 2014-15 SJVN Limited recorded a 23.61% increase in the PAT (Profit After Tax).  The net profit of the company increased to Rs. 424.29 crore from ` 343.24 crore earned during the corresponding quarter of last financial year.


While the company's total income increased 23.73% from Rs. 597.29 crore to  Rs. 739.08 crore, the PBT (Profit Before Tax) grew 23.34% from Rs. 418.64 crore to Rs. 516.37 crore.  Resultantly, the company's EPS during the quarter has increased from Rs.  0.83 to Rs. 1.03. 


Q. (5) What is the status of your upcoming Rampur Hydro Electric Project?


The construction work of company’s Rampur HEP was completed during the year 2014 and unit wise commissioning commenced w.e.f. 20th March 2014 with the synchronization of its first 68.67 MW unit with the northern grid. Synchronization and commercial operations of 5 units  was accomplished on 13th May 2014 (three units) 18th June 2014 (one unit) and 30th July 2014 (one unit).  Located in river Satluj, this power station is being operated in tandem with the upstream 1500 MW Nathpa Jhakri Hydro Power Station.


During the first quarter of FY 2014-15, the Rampur Station generated 236 MU of electricity while till 26th August the generation from the plant was recorded at 631 MU against the MoU target of 500 MU.  During the financial year, the power station is slated to generate 950 MU of electricity.


Q. (6)  SJVN has also diversified in the field of Wind Energy.  What is the status of the Plant ?


SJVN commenced Generation of energy from wind resource w.e.f. 20.01.2014 from its Khirvire Wind Power Project (56 units of 850kW each) in Ahmednagar district of Maharashtra. The last, 56th unit of the Project was commissioned on 20.05.2014. With the commissioning of all 56 WEGs, the whole Project stands commissioned on 20.05.2014.  From this project 3.32 MU of electricity was generated up to 31.03.2014.  During the first quarter of the FY 2014-15, the Wind power project has generated 7.584 MU of electricity.


Q. (7)  Does SJVN plan to diversify in North-Eastern state?

SJVN has signed a Memorandum of Agreement for the implementation of 80 MW Doimukh Hydro Electric Project in Arunachal Pradesh at Itanagar on August 12, 2014, Hon'ble Parliamentary Secretary (Hydro), on this occasion expressed the willingness of Govt. of Arunachal Pradesh to give more hydro projects to SJVN.  The 80MW  (2x40MW) Doimukh Hydro Electric Project will be implemented at a cost of Rs 739.58 crore as run-of-river scheme on river Pare in Arunachal Pradesh. The Project will generate 291.57 MU of electricity in a 90% dependable year.


Q. (8)  SJVN has gone global already, what is the status of the its upcoming project in Bhutan?


June 16, 2014  was a memorable day for SJVN Limited when Hon'ble Prime Minister of India Shri Narendra Modi laid foundation stone of our  600 MW Kholongchu HE Project in Bhutan.


The 600 MW Kholongchu HE Project being implemented by SJVN in joint venture with Druk Green Power Corporation Limited is a run of the river scheme located on Kholongchu river in Bhutan.  On completion the project will generate 2568.52 GWh of energy in a 90% dependable year (with 95% machine availability).The project is estimated to cost ` 3868.87 crore which will be shared in the ratio of 50:50 by the two joint venture partners. In terms of the agreement the joint venture company shall provide 12% of the saleable energy to the Royal Government of Bhutan free of cost as Royalty Energy during the first 12 years of commercial operations, and 18% thereafter for the remaining concession period.  SJVN Limited and Druk Green Power Corporation Limited shall have equal shareholding in the joint venture of the Company.  In terms of the agreement the project shall be financed under a debt equity ratio of 70:30.  For the 70% saleable energy generated, long term Power Purchase agreements shall be entered into with the beneficiaries and the balance power shall be sold through market mechanism.
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