Electrification of tracks is expected to reduce diesel-oil consumption by about 2.8 billion litres, resulting in the railways reducing its energy bill by about Rs 13,000 crore per annum by FY22.
The Indian Railways will be utilising its linear land along the tracks to install solar panels in order to cut down its power purchase cost.
Sources told Financial Express that the Railway Board has approved the proposed project and the first pilot will be done in the South-Central Railways zone.
The upcoming solar plants would be designed to use the transmission system built for railway traction, the daily reported.
Further it said that the transporter is also looking for solar power tenders for 4 gigawatt which is likely to open up business opportunities of about Rs 18,000 crore for the domestic solar industry.
The tender is likely to be invited by Solar Energy Corporation of India (SECI), the government’s nodal agency for solar bidding.
Electrification of tracks
Currently, the railways need 16 billion units of electricity every year and spends around Rs 10,000 crore on electricity every year with the average per unit cost being around Rs 6/unit.
Electrification of tracks is expected to reduce diesel-oil consumption by about 2.8 billion litres, resulting in the railways reducing its energy bill by about Rs 13,000 crore per annum by FY22.
Apart from 100 per cent electrification by 2021-22 for traction with zero use of diesel locomotives, the railways plans to use solar and renewable energy for all its other requirements, a source informed the daily.
