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SJVN And GUVNL Sign Power Purchase Agreement For Hydro Projects

Source:renewablewatch ↗

Why It Matters

Important for HPAS aspirants tracking major infrastructure developments, public sector undertakings (SJVN), and the state's hydropower economy contributing to national energy goals.

Summary

SJVN and Gujarat Urja Vikas Nigam Limited (GUVNL) have entered into a Power Purchase Agreement (PPA) for three hydro projects situated in Himachal Pradesh, underlining inter-state clean energy commerce and hydropower development.

Key Points

  • SJVN Limited has signed a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) for three hydro-electric projects located in Himachal Pradesh.
  • This partnership highlights inter-state collaboration for renewable energy procurement, bringing hydro power generated in Himachal Pradesh to support energy requirements in Gujarat.
  • Strengthens SJVN’s portfolio in hydro energy development and contributes to India's national non-fossil energy targets.

Important Terms

Power Purchase Agreement (PPA)

A legal contract between an electricity generator and a power purchaser (such as a utility company) that fixes the terms, pricing, and duration for buying and selling electrical energy.

UPSC context

HPAS Paper III (Economy & Infrastructure): Tests understanding of public-private partnerships, energy sector reforms, and inter-state power commerce mechanisms in Himachal Pradesh.

Source
SJVN Limited

A premier public sector undertaking and Mini Ratna enterprise under the Ministry of Power, Government of India, engaged in hydro power generation and renewable energy development.

UPSC context

HPAS Paper III: Important state-level public enterprises, central hydro projects in Himachal Pradesh, and their economic impact on the state budget.

Source
GUVNL (Gujarat Urja Vikas Nigam Limited)

The state-level government holding company that oversees power generation, procurement, and distribution activities across the state of Gujarat.

UPSC context

HPAS Current Affairs: Highlights inter-state cooperation and energy resource sharing between Himachal Pradesh's hydro wealth and industrial state utilities.

Source

Static Concepts Connected

Himachal Pradesh Economy and Infrastructure

What is the institutional structure and ownership pattern of SJVN Limited?

  • Category & Ministry: SJVN (formerly Satluj Jal Vidyut Nigam) is a Miniratna CPSE under the Ministry of Power, Government of India.
  • Joint Venture: It was originally incorporated as a joint venture between the Government of India and the Government of Himachal Pradesh in 1988.
  • Equity Sharing: The equity holding is shared between GoI and GoHP, making it a key vehicle for harnessing hydro potential in the Satluj river basin.

Cross-Topic Patterns

  • Hydropower Commerce & Inter-State Fiscal Federalism

    Himachal's hydropower exports to industrial states like Gujarat highlight the federal fiscal dynamics of inter-state utility agreements and Article 286/power trading frameworks.

SJVN hydro projects (Dhaulasidh, Luhri, Sunni Dam) and inter-state PPAs are prime candidates for HPAS Prelims matching or Mains energy questions.

Linked PYQs · 2

Linked PYQs · 2

  • 2023HPAS_PRELIMSGS1

    Match List I with List II : | List-I | List-II | |---|---| | (a) Himachal Pradesh Skill Development Project | (i) 2018 | | (b) Himachal Pradesh Kaushal Vikas Nigam | (ii) 2017 | | (c) Mukhya Mantri Yuva Ajivika Yojana | (iii) 2014 | | (d) Himachal Grhini Suvidha Yojana | (iv) 2019 | Choose the correct answer from the options given below : Code: (a) (b) (c) (d)

  • 2025HPAS_PRELIMSGS1

    Match List I with List II : | List-I (Scheme) | List-II (Launch Year) | |---|---| | (a) Mukhya Mantri Roshni Yojana | (i) 2015 | | (b) Himachal Pradesh Horticulture Development Project | (ii) 2019 | | (c) Mukhya Mantri Gram Path Yojana | (iii) 2009 | | (d) Swavalamban Yojana | (iv) 2020 | Choose the correct answer from the options given below : Code: (a) (b) (c) (d)