Railways to Save Rs 121.5 Cr Yearly via Addl Power in 2 States from BRBCL

Railways to Save Rs 121.5 Cr Yearly via Addl Power in 2 States from BRBCL

In a bid to economize electricity bill and reduce operating costs, Indian Railways has started the flow of additional power from Bhartiya Rail Bijli Company Ltd (BRBCL) in the states of Bihar and Rajasthan.

Indian Railways

The Railway ministry said in a statement that, it had commenced the flow of additional 50 MW power, total 100 MW, from BRBCL in Bihar effective from November 28 this year.

Besides, Indian Railways had also commenced the additional flow of 10 MW power from BRBCL in Rajasthan effective from November 20, 2019.

The move is expected to save an aggregate Rs 121.50 crore per year to Indian Railways, i.e. Rs 110 crore every year on recurring basis in the state of Bihar, while Rs 11.50 crore per annum in the state of Rajasthan.

Notably, Indian Railways is taking about 1,475 MW of power under open access as deemed licensee in eleven states and DVC area.

As per the ministry, these efforts will lead to an annual saving of over Rs 3,600 crore p. a. Since the commencement of power flow under open access effective from November, 2015 on business as usual mode, it has resulted into a total saving of more than Rs 12,400 crore, it further added.

BRBCL is a joint venture (JV) between National Thermal Power Corporation (NTPC) and the Ministry of Railways in a ratio of 74 percent and 26 percent respectively in order to produce power for traction purpose to Railways at low cost.

The ministry also informed that, out of the 4 units of BRBCL, with each unit of 250 MW capacity, power flow from 3 units of this plant has already been started for Indian Railways.

In January 2017, the first unit had started operation, and the main beneficiary of this plant is Indian Railways which is getting 90 percent of the power produced while the balance 10 percent power produced is given to Bihar state.

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Manu Tayal

Manu is an Associate Editor at Saur Energy International where she writes and edits clean & green energy news, featured articles and interview industry veterans with a special focus on solar, wind and financial segments.