Indian Railways to Procure 170 MW of Solar Power from Madhya Pradesh: A Major Leap Towards Net-Zero Emissions with Historic Solar Power Agreement

Author: Shalini Bharti, Research Analyst

18 March 2025

The Indian Railways is one of the world’s largest rail networks and apart from recent projects such as the bullet train project, the Indian Railways has taken a new bold step in this century and that is towards sustainability, the railway announced recently a new plan to reach net-zero carbon emission. Yet another major initiative has been signed between the railway network and the Madhya Pradesh government in which the railway has finalized a 170 MW PPA at ₹2.15/kWh. This deal is key to India’s move towards renewable energy and is estimated to define new standards in the transport sector.

As per the UnivDatos, the Concentrated Solar Power Market was valued at 6602 MW in 2022 & is expected to grow at a CAGR of 5.6% from 2023-2030.


A Bold Vision for a Green Future

In particular, the investor has urged Union Minister for Railways, Communications, Electronics, and Information Technology, Shri Ashwini Vaishnaw, who laid a vision to make Indian Railways a net-zero carbon emitter. This goal is in line with other sustainable development targets of the country and is propelled by large-scale electrification and the use of renewable energy.

Currently, Indian Railways has set a target of making 100% of the broad-gauge rail tracks electrified by the financial year 2025-26 to minimize the use of fossil fuels and reduce the amount of carbon dioxide emissions.

As per the UnivDatos, the Global Solar Powered Trains Market is expected to grow at a significant rate of around 4% during the forecast period (2022-2028). 

Strategic Collaboration for Renewable Energy

The project with Madhya Pradesh is one of the biggest achievements in the sustainability plan of the Indian Railways. It was signed through Rewa Ultra Mega Solar Power Limited (RUMSL), a joint venture of Solar Energy Corporation of India (SECI), and Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL). At present, RUMSL has planned solar parks in the Agar, Shajapur, and Neemuch districts involving 1500 MW. The plants are also beneficial for the development of the Indian renewable energy sector while also making it possible for the railways to achieve its longitudinal goal of procuring power at reasonable prices.

Expansion of Solar and Wind Energy Integration

India’s Railways has been especially instrumental in increasing the capacity of renewable energy for its functioning. To February 2025, Indian Railway has tied up 4,260 MW (installed) of Solar and 3,427 MW (installed) of wind energy for its energy requirements. This has been achieved through the contracting of rooftop structures, large power stations, and large windmills in various states to lower the network’s emissions. Some of the initiatives implemented in this regard include Bhilai 50 MW solar farm and several mega solar plants in Rajasthan and Karnataka.


Table: Tied up solar Installed capacity with Indian Railways:

Project

Installed Capacity (in MW)

Rooftop of stations and Rly service building

203

Bhilai

50

MCF

3.13

Diwana

2

Bina

1.7

RUMS (Rewa)

400

BSUL (Bundelkhand)

800

IRCON (Pavagarh, Karnataka)

500

RERTC (SECI) (Rajasthan)

100

900 MW RERTC (Bikaner NTPC, Jaisalmer 450 MW, Fatehgarh 200 MW)

1300

600 MW RERTC (NTPC, Bikaner, TEQ Green Barmer)

901

Total

4260.83

Source: Ministry of Railways


As per the UnivDatos, the Indian Solar Energy Market is expected to exceed at a significant CAGR of ~8% during the forecast period (2021-2027). 

Economic and Environmental Benefits of the Solar Agreement

The procurement of 170 MW of solar power from Madhya Pradesh will have several positive impacts:

  1. Thus, the procurement of electrical energy from the solar power source for ₹2.15 per kWh constitutes a major financial and environmental achievement.

  2. This ensures that the organization makes operational expenses less costly due to the availability of renewable energy in generating power needed in its operations significantly cutting on the need to use non-renewable energy sources.

  3. This decision also fits into India’s long-term plan of reducing import dependency on oil, reducing logistic costs, and encouraging the use of renewable sources of energy for the country.

A Call for Nationwide Renewable Energy Contributions

Reliance on renewable energy, whether solar, wind, hydro, or nuclear electricity for electrical energy required for railway networks has been called for by Shri Ashwini Vaishnaw across all the Indian states. Thus, the experience of the partnership in Madhya Pradesh creates positive conditions for the replication of such activities and increases the number of states interested in contributing to this transition in India. Such an initiative in the adoption of renewable energy, not only will serve as a huge reinforcement to the Indian Railways but will augment greatly to the Indian government’s goal of making India into a powerhouse for clean energy.

Massive Investments in Railway Infrastructure

Apart from the new focus on renewable energy, Indian Railways is maybe for the first time seeing such a historic investment in capacity expansion. Out of this, Madhya Pradesh has been provided ₹14,745 crore to develop a railway network in the fiscal year 2025-26. Large infrastructure grants will be applied to track and circulation extension, electrification, and other related improvement projects. The speed of railway track construction has accelerated from 29 km per year before 2014 to 230 km per year today, that is expand the railway track 7.5 times.

Conclusion: A Sustainable Future for Indian Railways

The latest solar power deal is a good step in the direction of making Indian Railways a net zero emitter. As the largest consumer of electricity in India, Indian Railways is working hard to electrify the railway lines at a massive scale of power purchase agreements, renewable energy partnerships, and record investments aimed at making railway transportation environmentally sustainable across the globe. The success of this initiative might have a positive impact on the other nations who are interested in the shift to the implementation of renewable energy within the public transportation systems.

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