Dear Shareholders,

 "It gives me great pleasure to share with you the performance of your Company during the Financial Year (FY) 2015-16; I extend a    very warm welcome to all   the  shareholders.

  The Company has signed an MOU for the first time with its holding  Company i.e. RITES Limited for the year 2014-15 and got “Excellent” rating in its                   performance evaluation under the MOU. Company has  also signed a MOU for the year 2015-16 with RITES Limited.

The company has earned total income of Rs. 18.04 Crore  which includes Rs. 17.10 Crore from consultancy business as operating turnover and interest & other income of Rs. 0.94 Crore. Net profit after tax for the year is of Rs. 3.14 Crore, a quantum jump as compared to Rs. 0.22 Crore of the last financial year.                                                              

In a short span of its inception, Your Company has made big strides in the area of power sector. The Company has achieved many landmarks in terms of reducing the financial burden by affecting cost efficiencies for Railways by procuring power at economical tariff during the year. So far a total of about 1200 MW power has been tied up by your company for Railway out of average requirement of 2000 MW. The migration process of Indian Railway from consumer mode to Deemed Distribution Licensee started from 2015 initially at CTU connected points in Delhi Kanpur section, which was progressively extended to the states of Maharashtra, Gujarat, MP & Jharkhand.

It is a matter of proud to inform that despite stiff resistance from State Utilities, Your company facilitated flow of 650 MW power in the states of UP (CTU Point) through Competitive bidding, Maharashtra, Gujarat, MP & Jharkhand from RGPPL plant as per the allocation of Ministry of Power (MoP) as well as from M/s Tata Power Company Ltd. in Maharashtra at MERC determined tariff. This has resulted into a savings of over Rs.500 Crore to Railways in their energy bills for the year 2015-16 translating in to annualized savings of Rs.1300 Crore. This would be as per budgetary prouncement of Hon’ble MR in his Budget Speech 2016.

I am happy to share that your company initiated the activity of power procurement for the first time for Indian Railways through competitive bidding by adopting the model bid document of Ministry of Power (MOP) as Deemed Distribution Licensee and tied up 585 MW power from M/s Jindal Indian Thermal Power Ltd. at the competitive tariff for the first time in country by any DISCOM.

However, the challenges and stiff resistances are being experienced as the states are delaying issue of No Objection Certificate (NOC) required for getting Open Access thereby impeding flow of power number of regulatory issues also cropped up by the States Authorities in implementation of Railways status as deemed distribution licensee. Resolving such issues were of paramount importance & becomes a prerequisite in migration planning from consumer mode. Your company exerted & took lead in providing the required assistance to Central Railway in respect of regulatory issues by filing the petition in CERC and was able to get order in favor of Railways. Assistance to Railways was also provided in APTEL where the judgment of CERC dt.05.11.15 has been challenged by WBSEDCL. As a result of concerted efforts, an interim order from APTEL has also been received in favor of Railways.

Your Company is also devising a scheme for forecasting & scheduling of power for Railways through PGCIL as scheduling of power near to actual load for Indian Railways will further  increase savings. After implementation of scheme, the forecasting of power can be made as close as to the load requirement. This will help minimizing the impact of over drawl & under drawl of power by Railways. Your company has also engaged M/s PTC India Ltd for managing the power portfolio management of Railways, who is advising Railways for scheduling & forecasting, power procurement planning,  capacity building programme for Railways / Railway Energy Management Company Ltd. Official, assisting fulfillment of RPOs etc.

Integration of Renewable Energy Resources is the top priority for energy security and also for reducing carbon emission towards clean development. It’s a matter of great proud to inform that your company commercial operations of 13 Nos. of 26 MW Wind Power Plant from 16th October 2015 at Jaiselmer Rajasthan which have transmitted 12 million Units of electricity into the grid during the year. This Wind Mill Plant has been dedicated by Hon’ble Minister of Railways Shri. Suresh Prabhakar Prabhu to the Nation on 30.12.15, the entire power generated from this power plant is being utilized for powering 3 Railway Traction Sub-Station Bhartpur- Kota Section of West Central Railway, truly terming this section as the first “Railway Green Energy Corridor”.

Before I conclude, I must express my sincere thanks to our esteemed shareholders, my colleagues on the Board of Directors and to the Ministry of Railways for their valuable support, advice and co-operation.

I acknowledge that organizations are built on a strong-management stakeholder’s relationship, which is a two way channel. I hope the coming years will further strengthen our relationship with all stakeholders for a sustainable growth and performance of the Company.

Firmly anchored in the traditional wisdom of the past and seizing the opportunities in the present, your company is poised to excel in the years ahead."

With Best Wishes,

 

      Sushir Kr.Saxena,

        CEO/REMCL