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First Bilateral Power Purchase Agreement by the Indian Railways
Feb 14, 2015

Indian Railways concluded its first bilateral power procurement agreement between Damodar Valley Corporation (DVC) and North Central Railway.

  • Under the agreement, Railways will buy 50 Mw of power from DVC at Auraiya Grid Sub-station facilitated by Railways Energy Management Company Limited, a Joint Venture (JV) of Indian railway and RITES, a PSU of Ministry of Railways.

  • This is the beginning of energy cost reduction measure being taken up by Railways.

  • Railways are the biggest consumer of the electricity, consuming about 18 billion units per year with peak requirement of about 4000 Mw.

  • In order to enable Railways to buy power directly from suppliers, Railways have been notified as ‘Deemed Licensee’ by Ministry of Power.

  • Railway is working to go for more such contracts at key load centers in the coming days which will enable Railways to generate significant savings in its traction electricity bills.


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