Railways, a bulk consumer of energy, today proposed to set up a Railway Energy Management Company shortly to bring efficiency in energy consumption and help in power purchases.

At present, Railways foots a bill of Rs 9000 crore in electric consumption.

The company would be formed with 51 per cent equity by RITES and 49 per cent by Railways, Railway Board Member Kul Bhushan told reporters . He said the company will be taking up all green energy initiatives and infuse "technological reforms and initiatives to bring energy efficiency and reduce energy consumption".

Railway Minister Pawan Kumar Bansal has proposed to setting up of the company in his budget speech to harness the potential of solar and wind every.

The company would help Railways in its mission to save 12 per cent in energy consumption, Bhushan said, adding Railways is also going to harness wind and solar energy and embark on power trading through this company.

The company also proposes take up projects in the power sector for other customers, he said.

"For buying power, we are also going to take up through this company, so we are able to economise our cost and able to economise cost of operation," he said.