Hon’ble Minister of Railways Shri Suresh Prabhu and Hon’ble Minister of State (Independent Charge) for Power, Coal, New and Renewable Energy and Mines Shri Piyush Goyal set the MISSION 41K, i.e. saving of Rs 41,000 crore in electricity bill for Indian Railways upto 2025.
Over the years, rate of electricity for traction has increased considerably putting lot of burden on Railway finances. Railways thereby started exploring feasibility of purchasing electricity from open market.
Ministry of Power has also given deemed distribution licensee status to Indian Railways and Central Electricity Regulatory Commission (CERC) has also endorsed this decision which has paved the way for availing electricity by Railways through Open Access mechanism.
Accordingly Power Purchase Agreement (PPA) was signed in November 2015 by Central Railway with Ratnagiri Gas and Power Pvt. Ltd. for 50 traction sub-stations located in the state of Maharashtra. The agreement expired on 31st March 2017. Availing traction supply from RGPPL during the period from Nov 2015 to March 2017 savings of approx. Rs 800 Crore has been achieved for 50 traction sub-stations situated in Maharashtra.
Central Railway has now signed Power Purchase Agreement with RGPPL for further period of 5 years w.e.f. 1.4.2017. The traction power will be supplied @Rs 5.50 per unit as against the present power tariff of Rs 9.00 per unit of State Electricity Company. Thus Central Railway will achieve the savings of Rs 2500 crore approx. over the next 5 years.