The plant, which is being set up under a joint venture with NTPC with railways equity contribution standing at 26 per cent, would be a step closer to railways attaining self-reliance in its energy needs, Member (Electric) Railway Board Kul Bhushan told reporters here.
"The first unit would be commissioned by June 2014 and the remaining three units will be made operational in phases by March 2015," he said.
Talking about the second power plant which is coming up at Adra in West Bengal, he said they are awaiting allotment of coal linkages before seeking environmental clearence for the project.
The other aim is to keep a check on its energy bill with "progressive" electrifiction of the railway network which spans over 64,000 km. During the 12th Plan, the proposal is to electrify 6500 km route.
At present, Railways consume 3000 MW to run its fleet trains on 24,000 km of electrified tracks, spending Rs 9000 crore. In contrast, it spends Rs 16,000 crore for running trains on non-electrified section.
Talks are on with Nuclear Power Corporation of India and Atomic Energy Atomic Energy Commission for a captive nuclear power plant, Kul Bhushan said.