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Electricity consumption by Indian railway is about 14 million units and it cost around Rs 6000 crore to the department. In order to reduce this huge cost and power for railway stations and running trains it has planned to set up its own wind and thermal power plant.

It is already running a 10-Mw wind farm in Chennai with help of Suzlon and looking for places in Tamil Nadu and Gujarat to set up more wind farms.

In thermal, its plant to set up a 1000 MW thermal power plant, Nabinagar project, under a joint venture with NTPC Ltd is pending due to land problem. Bharatiya Rail Bijlee Company, will help in implementing the project and Bharat Heavy Electricals Ltd (BHEL) will supply orders to the project.

The total project cost is Rs 1605 and the railway is putting in equity of only Rs 417 crore in the Nabinagar project, while it would save Rs 400 crore annually when the plant became operational.

Source: Business Standard