New Delhi: SJVN Ltd is set to form a wholly owned subsidiary company for the development of renewable energy (RE), small hydro power and green hydrogen projects after its Board of Directors gave a nod to the plan on Friday. In a regulatory filing to the stock exchanges, SJVN said, "In compliance with Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, it is to inform that the Board of Directors of Company in its meeting held today i.e. Friday 12th November, 2021 inter-alia has considered and approved the proposal regarding formation of Wholly Owned Subsidiary Company for development of renewable energy, small hydro and green hydrogen project, subject to approval of Government of India."
The board has also accorded its investment approval to contribute initial equity of Rs 50 crore by SJVN Limited in the proposed subsidiary company. The name of SJVN's subsidiary company will be finalised after approval from the Ministry of Corporate Affairs.
Elaborating on the business areas of the subsidiary company, SJVN said that its RE arm will focus on power generation, in particular through solar parks, wind projects and hybrid projects, and on battery energy storage system (BESS) and green hydrogen, among other things. "The proposed wholly owned subsidiary company to be incorporated in India shall carry out business in the field of Power Generation, in particular Solar Parks/Projects, Wind Projects and Hybrid Projects including Battery Energy Storage System (BESS), assets creation in Wave, Biomass, Small Hydro (being RE) and Green Hydrogen based business ventures," said SJVN.
"The proposal is subject to the approvals from concerned authorities like NITI Aayog, DIPAM (Department of Investment and Public Asset Management, Ministry of Finance, Government of India etc," said SJVN.
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