Indian Economy News

Railways signs power procurement agreement with DVC

  • Livemit" target="_blank">Livemit
  • February 9, 2015

New Delhi: In a bid to cut its energy costs, the railways has signed a bilateral power procurement agreement with the Damodar Valley Corporation (DVC) on Friday. The agreement was signed between North Central Railway and DVC.

This is the first time the railways will directly buy power from a supplier.

Under the agreement, railways will buy 50 MW of power from DVC at Auraiya Grid Sub-station facilitated by Railways Energy Management Co. Ltd, a joint venture of the Indian Railways and RITES, a public sector unit of the railways ministry, a press release from the ministry said.

“This is the beginning of energy cost reduction measure being taken up by the railways,” the release added.

Railways is the biggest consumer of the electricity, consuming about 18 billion units per year.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.