RITES arm secures its largest mandate from Railways, to manage 3 GW solar power plants’ installation
ITES Ltd on Thursday said its subsidiary REMCL has secured its largest mandate from Indian Railways for tendering, installation, supervision and managing power supply from three GW solar energy plants, which will be set up on vacant Indian Railways’ land. The project will be divided into three phases of one gigawatt (GW) each and the entire installation is expected to be completed by 2022-23.
“The first and third phases of 1 GW each will be on a PPP (public-private partnership) basis under the design, build, finance, operate and transfer model. Second phase of the project (1 GW) will be on the ownership model of Railway Energy Management Company Ltd (REMCL), which will be eligible for capital subsidy under the CPSE investment scheme,” the company said in a statement. The Railways has already identified suitable land to be leased to REMCL on nominal lease rent, it said. Rajeev Mehrotra, chairman and managing director of RITES Ltd and chairman of REMCL, said, “This is the largest mandate received by REMCL for tendering, installation and power management of solar energy.” He added that it 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 that may amount to about Rs 20 crore per year to REMCL during the life of the project, the statement said. REMCL is a subsidiary of RITES Ltd with 51 per cent stake and the balance held by Indian Railways. It is in the business of power management and generation. It is mandated to handle the entire power procurement under open access for Indian Railways besides handling renewable energy and energy efficiency projects. Currently, REMCL is handling about 74 per cent of the traction power of Railways through an open access mechanism..
Source: PTI
