SJVN Limited has been fined ₹13,44,020 each by the Bombay Stock Exchange and National Stock Exchange for non-compliance with SEBI listing regulations regarding board composition.

The penalties were levied due to the absence of the requisite number of independent directors on the company’s board. This shortfall impacted the quorum requirements for board meetings and the statutory composition of key committees.

Regulatory Violations

The stock exchanges cited violations of multiple regulations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The specific breaches included:

• Regulation 17(1) and 17(2A): Board composition and quorum requirements.
• Regulation 18(1): Audit Committee composition.
• Regulation 19(1)/19(2): Nomination and Remuneration Committee composition.
• Regulation 20(2)/(2A): Stakeholder Relationship Committee composition.
• Regulation 21(2): Risk Management Committee composition.

The notices were issued on August 25, 2026, and received by the company on the same date.

Remedial Actions Taken

SJVN Limited, a Navratna Central Public Sector Enterprise and a joint venture between the Government of India and the Government of Himachal Pradesh, stated that the power to appoint directors vests with the President of India through the Ministry of Power.

The company confirmed that Smt. Arti Kujur was appointed as an independent director effective July 17, 2026. Following this appointment, the relevant board committees have been reconstituted. SJVN asserts it is now compliant with Regulations 17(2A), 20(2)/(2A), and 21(2).

Financial Impact and Waiver Request

The company disclosed that the fines have no quantifiable impact on its financial or operational activities. SJVN plans to submit a request to both exchanges for a waiver of the imposed fines, citing the subsequent compliance achieved through the new appointment.

What the Numbers Show

The total penalty liability stands at ₹26,88,040 (₹13,44,020 x 2). While the company declares no financial impact, this figure represents a direct cash outflow unless waived. The timeline shows a gap between the appointment of the new director in July 2026 and the issuance of the penalty notices in August 2026, suggesting the regulatory action was based on the period of non-compliance prior to the appointment.

SJVN has achieved the Commercial Operation Date (COD) for its 75 MW Jamui Solar Power Project in Bihar, executed through its wholly owned subsidiary, SJVN Green Energy Limited. The project, developed on approximately 300 acres of land near Village Hadhadiya, Kakanchaur, was completed at an estimated cost of ₹342 crore. This milestone strengthens the company’s renewable energy portfolio and supports India’s target of achieving 500 GW of renewable energy capacity by 2030.

Project Financials and Operations

The project is designed to supply electricity to the State of Bihar under a competitive tariff structure. The power generated will be sold at a fixed rate of ₹2.96 per unit. Over its operational life, the facility is expected to deliver significant energy output while contributing to local economic development through job creation.

Generation and Environmental Impact

According to Sh. Ajay Sharma, Director (Personnel), SJVN, the 75 MW installation is expected to generate approximately 90 million units of electricity during its first year of operation. Cumulatively, the project is projected to produce around 3,522 million units over a period of 25 years.

Environmentally, the commissioning of the plant is estimated to reduce approximately 82,250.74 tonnes of carbon emissions. This reduction supports national decarbonisation objectives and climate commitments. The project was developed pursuant to a tender floated by the Bihar Renewable Energy Development Agency (BREDA).

Employment and Economic Contribution

Sh. Rajesh Chandel, Director (Projects), SJVN, highlighted the project's role in local economic development. The construction and operation phases have created approximately 15-20 direct employment opportunities and around 50-100 indirect employment opportunities. These green jobs provide an economic impetus to the local community in Jamui District.

Strategic Significance

The successful COD reinforces SJVN Green Energy Limited’s commitment to developing renewable energy projects across India. As a Navratna Central Public Sector Enterprise and a joint venture between the Government of India and the Government of Himachal Pradesh, SJVN continues to expand its clean energy footprint. The addition of this 75 MW capacity aligns with the company’s vision of becoming a leading renewable energy provider in the country.