The first and the third phase of 1 GW each will be on PPP basis under Design, Build, Finance, Operate and Transfer model
The second phase of the project (1 GW) will be on ownership model of REMCL
New Delhi: RITES Limited’s subsidiary REMCL (Railway Energy Management Company Ltd) has secured its largest mandate from the Indian Railways for handling the tendering, installation, supervision and managing power supply from 3 GW solar power plants to be set-up on vacant Railway Land. The project will be divided into 3 phases of 1 GW each, RITES said in an official statement on Thursday. The move is in line with the announcement made by Finance Minister Nirmala Sitharaman earlier this year while presenting the Union Budget.
She had said that the government proposed to set up large solar power capacity along railway tracks on land owned by the Railways.
REMCL will execute project in 3 phases
“The first and the third phase of 1 GW each will be on PPP basis under Design, Build, Finance, Operate and Transfer model. Second phase of the project (1 GW) will be on ownership model of REMCL, which will be eligible for capital subsidy under CPSE investment scheme. The Railways have already identified suitable land to be leased to REMCL on nominal lease rent,” the statement released by RITES said.
This is the largest mandate received by REMCL: Chairman
Commenting on the news, 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 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 the life of the project. The entire installation is expected to be completed by 2022-23.
The Railways has large tracts of land along its tracks which can be leveraged to set up solar power generation capacities. This is significant because it will help the national transporter cut down its electricity bill. It consumes 12 BU of electricity annually. The Railways plans to become a “net zero” carbon emitter by 2030.