In a significant development, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday announced the signing of a Memorandum of Understanding (MoU) between India and the United States Agency for International Development/India (USAID/India) on June 14. The focus of this collaboration is to support Indian Railways in achieving its ambitious Mission of Net Zero Carbon Emission by 2030.
What does the MoU entail?
The MoU serves as a platform for fostering interaction and knowledge-sharing between Indian Railways and USAID/India in the railway sector. It is designed to facilitate utility modernization, advance energy solutions and systems, promote regional energy and market integration, encourage private sector participation and engagement, and conduct training programs and seminars/workshops with a focus on specific technology areas such as Renewable Energy and energy efficiency.
This collaboration is not the first of its kind, as USAID/India had previously collaborated with Indian Railways in the deployment of solar rooftop across railway platforms.
Key Areas:
The key areas of cooperation outlined in the MoU include long-term energy planning for Indian Railways, development of an Energy Efficiency Policy and Action Plan for Indian Railway Buildings, planning for clean energy procurement to achieve the net-zero vision, technical support for addressing regulatory and implementation barriers, bid design and bid management support for large-scale renewable procurement, support for the promotion of e-mobility, and collaborative hosting of events, conferences, and capacity-building programs.
The MoU allows for revisions, modifications, or amendments, subject to approval by both participants. It is effective from the date of signing and is expected to continue for a period of five years or until the effective end of the South Asia Regional Energy Partnership (SAREP), whichever period is shorter.
Impact:
The signing of the MoU is a strategic move to aid Indian Railways in achieving its Mission Net Zero Carbon Emission by 2030. The collaborative efforts aim to reduce the dependency of Indian Railways on imported fuels like Diesel and Coal. Additionally, the deployment of Renewable Energy (RE) plants is anticipated to boost RE technology in the country, fostering the development of a local ecosystem and encouraging local product development.
Expenditure:
Technical assistance for the services outlined in the MoU will be provided by USAID under the South Asia Regional Energy Partnership (SAREP) initiative. Importantly, the MoU does not impose any financial commitment on Indian Railways, emphasizing its non-binding nature and serving as a testament to the collaborative and supportive framework of this strategic agreement.