Contact Your Financial Adviser Money Making MC
24
November 2017
 |
Indian railways (The Total Investment & Insurance
Solutions)
The
Railways on Thursday said it had saved about Rs 5,600 crore vis-a-vis the
'Business As Usual' (BAU) mode by procuring power directly under the open access
arrangements. The Total Investment & Insurance
Solutions
"The
Indian Railways succeeded in achieving a cumulative saving of Rs 5,636 crore
from April 2015 to October 2017 against the BAU mode by procuring power
directly under open access arrangements," a Ministry statement said.
The
Ministry said the cumulative figure is likely to go up to Rs 6,927 crore by the
end of March 2018, which is around Rs 1,000 crore more than the target.
It
projected a cumulative saving of about Rs 41,000 crore in 10 years in electric
traction bill, which has been named as 'Mission 41K'.
The
open access policy under the Electricity Act, 2003, allows consumers with
electricity load above 1 megawatt to procure power directly from the market.
The
Railways currently sources power through open access route in Maharashtra,
Gujarat, Madhya Pradesh, Jharkhand, Rajasthan, Haryana, and Karnataka, and the
Damodar Valley Corporation area.
Bihar,
Uttar Pradesh, West Bengal, Tamil Nadu, and Telangana have also agreed to
permit the Railways for flow of power though open access route, which is likely
to start by next year, the Ministry said.
It
said that as of now out of the Railways' total requirement of about 2,000 MW
for electric traction, more than 1,000 MW is flowing under the open
access.
This
has reduced the average cost in states where power is flowing under open
access, to about Rs 5 from earlier over Rs 7 per unit.
"These
savings will be utilised for taking up electrification of the rail network as
part of Mission Electrification," it said.
The
Ministry said this move will further reduce its diesel bill and multiply
savings in energy bill, taking it to about Rs 10,500 crore per annum in the
next few years on 100 per cent electrification of the rail network.
Earlier,
in November 2015, an order the Central Electricity Regulatory Commission had
allowed the Railways to undertake transmission and distribution of electricity
as a deemed licensee under the Electricity Act.
According
to the Railways, it consumes around 2.8 billion litres of diesel a year,
costing about Rs 18,000 crore, and 17.5 billion units of electricity.
Currently, about 30 per cent of the fuel bill goes into paying the state
taxes.
"This
humble beginning with cutting input costs will strengthen financial resilience
of the Railways, improve its resource mobilisation, and enable shifting of
traffic from road to rail by making it more attractive," it added.The Total Investment & Insurance Solutions
No comments:
Post a Comment