CR Mumbai div saves Rs 200 cr per year by buying electricity from open market

Following Central Railways' cent per cent electrification for Mumbai Division, the Railways was able to reduce their carbon footprint by over 1.64 lakh tonne, as it earlier used more than 5,000 litre diesel to run trains.

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Following Central Railways' cent per cent electrification for Mumbai Division, the Railways was able to reduce their carbon footprint by over 1.64 lakh tonne, as it earlier used more than 5,000 litre diesel to run trains.

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The Mumbai division of Central Railway (CR) is now saving Rs 200 crore annually after it began to procure electricity from the open market since 2015, said officials.

Divisional manager Rajnish Kumar Goyal said earlier railways procured electricity from Tata and Maharashtra State Electricity Board (MSEB) since the two agencies supply electricity in South Mumbai and Central Mumbai. However, both these agencies charged nearly Rs 10-11 per unit, which made for an annual bill of Rs 600 crore.

The official explained, “Since Railways can buy electricity from the open market so we began buying energy via competitive pricing per unit, which meant the Railways could buy from the agency which supplied cheaper power. Currently, Railways is buying electricity at Rs 5 per unit.” Now Mumbai division pays a bill of Rs 400 crore, said the official.

The Mumbai division went fully electric in 2019, which meant trains now run on electricity instead of diesel. In fact, the last four long distance trains hauled by diesel locomotives will also be replaced with an electric traction said Goyal.

Following Central Railways’ cent per cent electrification for Mumbai Division, the Railways was able to reduce their carbon footprint by over 1.64 lakh tonne, as it earlier used more than 5,000 litre diesel to run trains.

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