Indian Railways is establishing its first coal based captive power plant of 1000 MW capacity at Nabinagar in Bihar in JV with National Thermal Power Corporation which is under construction.

Indian Railways has further planned to set up 2 more captive power plants in Railway land, 1 1320 MW capacity coal based power plant and Adra in Purulia district of West Bengal is JV with National Thermal Power Corporation and another 700 MW gas power plant at ThakurIi near Kalyan in Maharashtra. Fuel linkage and environmental clearance for both these plants are is process.

Annual saving of about INR 500 crore from Nabinagar plant, INR 600 crore from Adra plant and INR 200 crore for Thakurli plant has been estimated due to reduction in electricity tariff.