Solar PLI scheme, Nigeria deal power Sterling & Wilson to 4-month high

The share price of solar engineering company Sterling and Wilson Renewable Energy gained as much as 5 percent on September 23 after the company’s joint venture with Sun Africa signed a memorandum with the Nigerian government to develop power plants in five different locations of the country.

At 12.30 pm, the scrip was quoting Rs 343 on the NSE after touching a day’s high of Rs 361. The stock hit a high of Rs 358 on May 6.

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In an exchange filing, the company said, “The MoU with Government of the Federal Republic of Nigeria is to deliver the development, design, construction and commissioning of solar photovoltaic power plants with total installed capacity of 961 MWdc at five different locations, along with battery energy storage systems with total installed capacity of 455 MWh.”

Financing for these projects are being negotiated between US EXIM, ING and the government of Nigeria, it added.

Another positive trigger for the stock has been the Union Cabinet’s approval to the second tranche of the PLI scheme for the development of solar PV modules, with an outlay of Rs 19,500 crore.

The scheme would bring “direct investment of around Rs 94,000 crore” and lead to direct employment of about 1,95,000 persons and indirect employment of around 7,80,000, the Centre said in a release.

The stock, which has gained close to 18 percent in the last four days, is not tracked by any analyst.

In the June quarter, the company reported a consolidated loss of Rs 355 crore on a revenue of Rs 1,207 crore.