Railway Energy Management Company Ltd mandated for management of 3 GW Solar plants installation on Railway land

Gurugram, 4th June 2020 (NSE: RITES, BSE: 541556) : RITES Limited’s subsidiary Railway Energy Management Company Ltd. (REMCL) has secured its largest mandate from Indian Railways for handling tendering, installation supervision and managing power supply from 3 GW solar power plants to be set up on vacant Indian Railways Land. The project will be divided into 3 phases of 1 GW each. First and 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 has 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 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. Entire installation is expected to be completed by 2022-23.

About REMCL:

REMCL is a subsidiary of RITES Limited with 51%  stake and the balance held by Indian Railways. It is in the business of Power Management and Power Generation. REMCL is manadated to handle entire power procurment under open access for Indian Railways besides handling renewable energy and energy efficiency projects. REMCL is presently handling about 74% of the traction power of Railways through open access mechanism. 

About RITES Limited:

RITES Limited is a Miniratna (Category – I) Schedule ‘A’ Public Sector Enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. Company has an experience spanning 46 years and has undertaken projects in over 55 countries including Asia, Africa, Latin America, South America and Middle East regions. RITES Limited is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia).

Source: RITES Limited-Press Release | Image Credit: Pixabay

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