Piyush Goyal: Railways takes decisive step to cut electricity bill, reduce Operating cost

With the goal of reducing the cost of electricity for traction, Indian Railways has commenced flow of additional 50 MW power (Total 100 MW) from Bharatiya Rail Bijli Company Limited (BRBCL) in Bihar with effect from November 28, 2019, which is expected to lead to an annual saving of Rs. 110 Crores per annum on a recurring basis. An additional flow of 10 MW power from BRBCL has also been started in Rajasthan with effect from  November 20, which is expected to lead to an annual saving of Rs. 11.50 crores per annum.

'A decisive step to cut down on electricity bill'

Union Railway Minister on Monday, taking to Twitter, posted, "Railways takes a decisive step to cut down on electricity bill & reduce operating cost. Securing additional power flow from Bihar & Rajasthan, Railways to save Rs 121 crores on a yearly basis."

A total saving of over Rs. 12,400 crores

Indian Railways takes about 1475 MW of power under open access as deemed licensee in 11 states and Damodar Valley Corporation (DVC) area. These efforts are resulting in an annual saving of over Rs. 3,600 Crores per annum and since the commencement of power flow under open access with effect from November 2015 on business as usual mode, it has resulted in a total saving of over Rs. 12,400 crores.

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The first unit started operation in January 2017

The Bhartiya Rail Bijli Company Limited (BRBCL) is a joint venture company of National Thermal Power Corporation (NTPC) and Ministry of Railways to produce electricity for traction purposes to Railways at a low cost. It has equity participation of NTPC and Railways at 74 per cent and 26 per cent respectively. Out of four units (each 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 January 2017. The main beneficiary of this plant is Railways which is getting 90 per cent of the power produced and balance 10 per cent power is given to the Bihar.

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