Central Railway saves Rs 26 crore after switch from MSDCEL to Dabhol

The Central Railway (CR) has saved Rs 26 crore in power bills in November from the Mumbai suburban alone and a total of Rs 40 crore in the network within its jurisdiction in the country after it has made the switch to drawing electricity from the Dabhol power plant, instead of the Maharashtra State Electricity Distribution Corporation Limited (MSEDCL).

The CR, which had been purchasing power from MSDCEL at the rate of Rs 9 per unit is now paying the more affordable rate of Ratnagiri Gas and Power Private Limited’s (RGPPL) Dabhol at Rs 7 per unit. CR had been negotiating with the Gujarat government for the same but because of the delay the CR applied to Dabhol as well and received approval in October. After this CR officials made the necessary connections and began to run the local trains at the subsidised rates. “We realised that it was taking Gujarat too much time to respond and get the paperwork in time so we approached Dabhol which gave the okay comparatively faster,” said a CR official on the condition of anonymity.

The CR’s network that extends up to states in the North like Madhya Pradesh and Uttar Pradesh also saw the trains being run with the new source of electricity because of which Rs14 crore was saved. “So we were and are purchasing maximum power to run the local trains more than the passenger trains. This is why it’s is a big step for the railways,” added the official. The Indian Railways has recently announced that they expect a further reduction in expenditure in power to as low as Rs 5 per unit.