Indian Railways has signed a 170-megawatt power purchase agreement with the Madhya Pradesh government, securing the country’s cheapest solar energy at ₹2.15 per kilowatt-hour as part of its push towards achieving net-zero emissions, the ministry announced on Monday.

Speaking at the Global Investors Summit 2025 in Bhopal via videoconferencing, Railway Minister Ashwini Vaishnaw reiterated the government’s commitment to 100 percent electrification of Indian Railways by the 2025-26 financial year and expanding its use of renewable energy sources, including solar, wind and nuclear power.

“With this milestone agreement, Indian Railways strengthens its renewable energy portfolio and takes a major step toward sustainability,” Vaishnaw said. “We urge all states to collaborate in supplying renewable energy to the national railway network.”

Expanding Renewable Energy Portfolio

Indian Railways has already secured 4,260 MW of installed solar capacity and 3,427 MW of installed wind capacity to meet its energy requirements.

The latest agreement was signed between the West Central Railway, Rewa Ultra Mega Solar Power Ltd., and solar power developer Waree Forever Energies Pvt Ltd.

The Indian government has identified railways as a key player in reducing carbon emissions, promoting clean energy, and decreasing reliance on fossil fuels.

The railway network is expected to require 10,000 MW of traction power by 2030, with increasing reliance on non-fossil sources.

Role in Rail Electrification

Vaishnaw commended Madhya Pradesh Chief Minister Mohan Yadav for supporting railway infrastructure development and renewable energy adoption.

The government’s collaboration with RUMSL enables direct PPA agreements between state energy providers and Indian Railways.

RUMSL, a joint venture between the Solar Energy Corp. of India and the Madhya Pradesh Urja Vikas Nigam Limited, operates India’s largest solar park in Neemuch.

The solar energy supplied to Indian Railways from RUMSL’s projects is expected to contribute significantly to its net-zero goal.

Record Budget Allocation

In addition to the renewable energy push, Indian Railways has allocated a record ₹14,745 crore ($1.78 billion) for railway infrastructure in Madhya Pradesh for the 2025-26 fiscal year.

The budget supports an accelerated pace of railway expansion, with track-laying efforts increasing from 29 km per year before 2014 to 230 km per year currently.

The agreement with Madhya Pradesh bolsters India’s broader strategy to integrate renewable energy into key infrastructure sectors, reducing carbon emissions and operational costs in one of the world’s largest railway networks.

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