The Hindu Business Line : Railways bets big on electric traction to control fuel bill

Cutting the bill
Railways is taking steps to bring down the cost of electricity purchase. These include: negotiations with State Electricity Boards, purchasing electricity directly from NTPC, planning a power plant for captive use and opting to buy electricity from independent power producers.

New Delhi , June 9

Indian Railways is increasing its focus on electric traction in order to deal with rising diesel prices. For every loaded goods train moving 1,000 km on electric traction instead of diesel traction, the Railways saves Rs 2 lakh.

Moreover, the Railways is taking several steps to bring down the cost of electricity purchase, including negotiations with State Electricity Boards (SEBs), by purchasing electricity directly from National Thermal Power Corporation (NTPC), planning a power plant for its captive use and opting to buy electricity from independent power producers (IPPs), Mr Ramesh Chandra, Member (Electrical), Railway Board, told Business Line.

Electrification targets

Till March 2006, the Railways had electrified 17,451 route km (27.6 per cent) of the total rail network of 63,221 km. "At present, the electrified routes account for about 66 per cent of freight loaded and 51 per cent of passengers moved by the Railways," said Mr Chandra.

In another five years, the Railways is aiming to have 33-34 per cent electrified route that would account for moving 75 per cent of freight loadings and 66 per cent of passenger loadings.

While the Railways planned electrification of 1,800 route km during the Tenth Plan period (which is on track), it plans to take up electrification for 3,000 route km in the Eleventh Plan. "A pair of trains run on electricity traction, carrying 5,000 tonnes of goods and travelling a distance of 1,000 km, saves about Rs 15 crore annually," Mr Chandra explained.

Negotiation with SEBs

Moreover, the Railways has negotiated with SEBs to get a lower per unit cost during the past few years. "While our average cost for electricity was Rs 4.72 per unit in 2000-01, it is now down to Rs 4.21 per unit," he said, adding this was achieved through active persuasion.

Between 1970-71 to 2000-01, while the Railway tariffs had moved up by eight times, the general prices had moved up 10 times and the SEBs increased their per unit charges from Railways by a range of 26 (Bihar State Electricity Board) to 46 (Gujarat State Electricity Board) times, said Mr Chandra.

The Railways also started acquiring electricity directly from NTPC, and even set up its own transmission lines in areas where State Boards did not cooperate, as it resulted in savings. "By such an exercise in Dadri-Kanpur section, where the transmission network was commissioned in 2003-04, the Railways saved about Rs 86 crore per annum," said Mr Chandra.

Venture with NTPC

Moreover, the Railways is now actively pursuing its captive power plant project with NTPC in Nabinagar. "The Ministry recently approved setting up the 1,000 MW 50:50 joint venture with NTPC. Railways share of equity is about Rs 700 crore," he said, adding that the project now needed Cabinet approval. The Railways consumed about 2,000 MW of electricity last fiscal for Rs 4,200 crore.

Additionally, the Railways has floated a tender inviting bids from independent power producers for supplying 350 MW power in Gujarat and Maharashtra.

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