Indian Railways to set up 3 GW solar plants on vacant land

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Indian Railways has tasked the Railway Energy Management Company Ltd (REMCL) with 3 GW of solar power procurement from plants to be set up on vacant Railways land. 

Besides tendering, the REMCL shall handle installation supervision and management of power supply from these solar power plants.

REMCL is a joint venture between Indian Railways and state-owned engineering consultancy Rites Ltd.

The project—REMCL’s largest solar power mandate from Indian Railways—will be divided into three phases of 1 GW each. 

The first and third phases of 1 GW each will be developed on public-private partnership (PPP) basis under ‘design, build, finance, operate and transfer’ model. 

The second phase of the project (1 GW) will be on the ownership model of REMCL, which will be eligible for capital subsidy under the Central Public Sector Undertaking Scheme for the development of 12 GW of solar

The entire installation is expected to be completed by 2022-23. 

The Railways have already identified suitable land to be leased to REMCL on nominal lease rent. 

Commenting on this mandate, Rajeev Mehrotra, Chairman & Managing Director, RITES Ltd and Chairman REMCL, said, “This is the largest mandate received by REMCL for tendering, installation and power management of solar energy. This will strengthen REMCL’s position as the green energy solution provider and energy manager to Indian Railways and firmly establish REMCL in the green energy sector in India.”

Besides bid management fee in the beginning, REMCL would earn long-term revenue through supply management from these installations which may amount to approximately Rs 20 crore per year to REMCL during life of the project. 

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