Indian Railways plans big to reduce its electricity bill; to save Rs 121 crore yearly due to this step

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Published: December 10, 2019 4:25:30 PM

Indian Railways is taking around 1475 MW of power under open access as deemed licensee in 11 states across the country and DVC area.

indian railwaysA joint venture company of National Thermal Power Corporation (NTPC) and Railway Ministry, BRBCL produces electricity for traction purpose to Indian Railways at a low cost.

Indian Railways takes step to reduce its electricity bill and minimize operating cost! In a bid to reduce the cost of electricity for traction, the national transporter has commenced flow of additional 50 MW power (a total of 100 MW power) from Bhartiya Rail Bijli Company Limited (BRBCL) in Bihar with effect from 28 November, 2019. It is being expected that the move will lead to an annual saving of Rs 110 crore per annum on a recurring basis. Also, an additional flow of 10 MW power from BRBCL has been started in the state of Rajasthan with effect from 20 November, 2019. This is likely to lead to an annual saving of Rs 11.50 crore per annum, according to the Railway Ministry.

In a recently issued press release, the Railway Ministry stated that Indian Railways is taking around 1475 MW of power under open access as deemed licensee in 11 states across the country and DVC area. The ministry further claimed that these efforts are resulting into a yearly saving of over Rs 3,600 crore. Moreover, since the commencement of power flow under open access with effect from November, 2015 on business as usual mode, over Rs 12,400 crore in total was saved.

A joint venture company of National Thermal Power Corporation (NTPC) and Railway Ministry, BRBCL produces electricity for traction purpose to Indian Railways at a low cost. The company has equity participation of NTPC and Indian Railways at 74 per cent and 26 per cent respectively. Out of the four units, each having a unit of 250 MW, power flow from three units of this plant has already been started for Indian Railways.

The first unit started operation in the month of January, 2017. The main beneficiary of this plant is the national transporter, which is getting 90 per cent of the power produced. While, the balance 10 per cent power is given to the state of Bihar, the Railway Ministry stated.

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