In a strategic move to support the Indian Railways’ commitment to sustainable energy, Indian Railway Finance Corporation (IRFC) has signed a Memorandum of Understanding (MoU) with Railway Energy Management Company Limited (REMC Ltd) for financing renewable energy (RE) projects across the railway network.
The MoU outlines a partnership that will support Indian Railways’ ambitious goal of achieving net-zero carbon emissions by 2030. It enables collaboration on solar, wind, and other renewable energy ventures, with REMC providing the technical expertise and project execution, while IRFC brings in financial backing, project appraisal, and fund-raising capability.
REMC Ltd is a joint venture between the Ministry of Railways and RITES Ltd, focused on energy management within the Indian Railways system. Under the terms of the MoU, REMCL will undertake project bidding and procurement of cost-efficient renewable energy. IRFC will facilitate capital mobilization and offer strategic financial solutions for both renewable and conventional energy projects under the captive model.
This partnership comes at a time when railway PSU stocks, particularly IRFC, are being closely tracked by market observers. Although IRFC shares have dipped by 14% in the past six months, they are still up by over 51% on a year-on-year basis, indicating long-term investor confidence in its strategic growth.
“The partnership aligns with the government’s vision of delivering world-class, efficient, and environmentally sustainable transportation solutions for the nation,” IRFC said in a statement.
This agreement not only emphasizes IRFC’s diversification beyond traditional rolling stock financing but also enhances REMCL’s mission to bring economical and sustainable energy to one of the largest railway networks in the world.
With Indian Railways being one of the country’s biggest energy consumers, this collaboration marks a significant milestone in leveraging green power to transform India’s transportation infrastructure