Indian Railways Floats Tender To Develop 1 MW Rooftop Solar Facility In Nagpur

Representational image. Credit: Canva

For the development of a 1 MW rooftop solar plant at a facility in the Nagpur Division of Central Railways, the Indian Railways has issued a request for proposals.


The last date for proposal submissions is May 8, 2023, which will be revealed on the same day.

Bidders can apply for at least 100% of the contracted capacity at the chosen site.


Bidders have to submit a sum of Rs. 2 million as an earnest money deposit, which will be reimbursed within 60 days of the bid submission deadline. After the Railways issue the Letter of Acceptance, the selected bidder will additionally have to provide the Performance Bank Guarantee.


The bid shall be valid for 180 days beginning on the date the techno-commercial bid is opened.

The project will be carried out as a Public-Private Partnership (PPP) using the Design, Build, Finance, Operate, and Transfer (DBFOT) approach.

The chosen solar power developer will be responsible for the solar PV system’s design, installation, engineering, erection, procurement, testing, and commissioning.

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The winning bidder will also be responsible for the operation and maintenance of the systems for the next 25 years after the projects are completed.

The solar electricity generated will be used only by Railways via a net metering scheme.

For grid-connected rooftop projects at various Railway sites, the Ministry of New and Renewable Energy (MNRE) has established a maximum subsidy of 15% of the overall project cost or the MNRE benchmark cost of Rs. 80 million/MW, whichever is lesser.

The subsidy will be distributed in accordance with MNRE norms. 

Railways have the right to a pro-rata reimbursement of the subsidy if the project fails to generate electricity consistently for one year or its principal assets are sold or decommissioned within 25 years. If the project developer fails to pay, railways can claim assets equal to the value of the released subsidy, also pro-rata.

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