Cabinet approves Railway MoU with USAID for energy efficiency

The MoU facilitates utility modernisation, advanced energy solutions and systems, regional energy, and market integration, as well as private sector participation and engagement

Published - January 05, 2024 09:44 pm IST - New Delhi

The Union Cabinet chaired by the Prime Minister Narendra Modi on January 5 was apprised of signing of Memorandum of Understanding between India and United States for International Development/India (USAID/India) for supporting Indian Railways to achieve Mission Net Zero Carbon Emission by 2030.

The MoU, which will be effective for five years since June 14, 2023, or until the effective end of South Asia Regional Energy Partnership (SAREP), whichever period is shorter. It provides a platform for Indian Railways to interact and share the latest developments and knowledge in the railway sector.  

The MoU has been signed to support India Railways in achieving Mission Net Zero Carbon Emission (NZCE) by 2030. This will help Indian Railways to reduce dependence on imported fuel such as Diesel, Coal etc. Deployment of Renewable Energy (RE) plants will give fillip to RE technology in the country. This will help in development of local ecosystem which subsequently gives boost to local product development.

The MoU facilitates utility modernisation, advanced energy solutions and systems, regional energy, and market integration, and private sector participation and engagement, training and seminars/workshops focusing on specific technology areas like Renewable Energy, energy efficiency, and other interactions for knowledge sharing.

Earlier, USAID/India had also worked with the Railways focused on deployment of rooftop solar across railway platforms. The MoU focusses on long-term energy planning including clean energy for Indian Railways, develop an Energy Efficiency Policy and Action Plan for Indian Railway Buildings, planning for clean energy procurement to achieve Indian Railway’s net-zero vision, technical support for addressing regulatory and implementation barriers, bid design and bid management support for system-friendly, large-scale renewable procurement and supporting Indian Railways in the promotion of e-mobility.

Collaboratively host event, conferences, and capacity-building programs in the mentioned identified areas.

Either participant may request in writing a revision, modification or amendment to all or any part of this MoU. Any revision, modification or amendment approved by the Participants will form part of the revised MoU. Such revision, modification or amendment will come into effect on such date as may be determined by the participants.

“This MoU is not an obligation of funds or a commitment of any kind, and it is non-binding. This does not involve any financial commitment from Indian Railways,” a railways spokesperson said. 

Indian Railways has signed another MoU with Confederation of Indian Industry (CII) to reduce energy and water consumption lowering Greenhouse Gas emissions. Railways and CII have renewed their MoU for third consecutive term on January 4. 

The railway spokesperson said that energy efficiency in manufacturing facilities and railway workshops resulted in energy savings of 210 lakh kWh, monetary savings of ₹16 crores and resulted in significant GHG emissions reduction of around 18,000 tons of CO2. 

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