RITES Ltd'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 three gigawatt solar power plants.
The project will be divided into three phases of one GW each. The first and third phase will be on public private partnership basis under design, build, finance, operate and transfer model.
The second phase of the project will be on ownership model of REMCL which will be eligible for capital subsidy under central public sector enterprise (CPSE) investment scheme. The Railways have already identified suitable land to be leased to REMCL on nominal lease rent.
"This will strengthen REMCL's position as the green energy solution provider and energy manager to Indian Railways and firmly establish REMCL in India's green energy sector," said RITES Ltd's Chairman and Managing Director Rajeev Mehrotra.
Besides bid management fee in the beginning, REMCL will earn long-term revenue through supply management from these installations which may amount to Rs 20 crore per year. The entire installation is expected to be completed by 2022-23, RITES said in a statement.
REMCL is a subsidiary of RITES Ltd with 51 per cent stake and the balance held by Indian Railways. It is presently handling about 74 per cent of the traction power of Railways through open access mechsm.
RITES Ltd is a mini ratna public sector enterprise and a leading player in the transport consultancy and engineering sector with diversified services and geographical reach.
( With inputs from ANI )