SJVN Ltd has received in-principle board approval to raise funds through the securitization of future returns from its Nathpa Jhakri Hydro Power Station. The move aims to monetize stable cash flows and support capital requirements for upcoming renewable energy and infrastructure projects.
Strategic Monetization Of Hydro Assets Underway
State-run power utility SJVN Ltd is considering a fund-raising initiative through the securitization of assets, specifically targeting future returns from its flagship Nathpa Jhakri Hydro Power Station. The board has granted in-principle approval for this financial strategy, which involves pooling future Return on Equity (RoE) from the 1,500 MW hydro facility into a securitized instrument.
This approach is expected to unlock value from existing assets without impacting operational control, enabling SJVN to channel funds into its expanding portfolio of solar, wind, and hydroelectric projects. The company has been actively pursuing capital-efficient models to meet its ambitious renewable energy targets and infrastructure development goals.
Major Takeaways
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SJVN board approves fund-raising via asset securitization
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Focus on monetizing RoE from Nathpa Jhakri Hydro Power Station
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Securitization to support renewable energy and infrastructure investments
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Strategy enables capital access without asset divestment
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Part of broader financial planning to meet growth targets
Sources: CNBC TV18, Livemint, Stock Insights, SJVN Corporate Filings