Rail Vikas Nigam (RVNL) and Jakson Green, the renewable energy arm of the Jakson Group, have announced the formation of a joint venture (JV) to explore solar power project opportunities in India and abroad.

Under the agreement, Jakson Green will own the majority 51% stake in the newly formed company and RVNL the remaining 49%.

The company signed a memorandum of understanding in March 2023, indicating its intention to form the JV to execute clean energy engineering, procurement, and construction (EPC) projects globally.

The partnership is expected to bring synergy in designing, executing, and delivering EPC projects globally. The JV will cater to giga-scale EPC clean energy energy projects in the Middle East and North Africa, the Commonwealth of Independent States, and Asia Pacific countries.

Jakson Green claims to have executed over 4 GW of solar EPC contracts and over 1.3 GW of solar operation and maintenance contracts to date.

As the infrastructure and project executing arm of Indian Railways, RVNL oversees the entire infrastructure project cycle from inception to commissioning. It manages the implementation of projects relating to the creation and augmentation of capacities of rail infrastructure on fast track basis and the raising of extra-budgetary resources for special-purpose vehicle projects.

Recently, in May 2023, the company was granted Navratna status, giving it enhanced delegation powers, operation, and financial autonomy.

The company aims to implement green energy projects across its subsidiaries in India and abroad.

The new JV aligns with the Indian Railways’ vision to achieve net zero carbon emissions by 2030.

The projected energy demand of the Indian Railways is expected to reach 8.2 GW by 2029-30. Achieving the net zero carbon emission goal would require about 30 GW of renewable energy capacity by that time.

According to Mercom’s India Solar Tender Tracker, the Indian Railways has floated 266.61 MW of solar project tenders to date.

Earlier in January 2024, RVNL executed a memorandum of understanding with REC Limited to finance up to ₹350 billion (~$4.21 billion) for Infrastructure Projects to be executed by RVNL over the next five years.

In August 2022, Mercom reported on how Southern Railway saved ₹20 million (~$240,532) annually on its power bills by opting for solar energy.