As power bill burns hole in pocket, CAG flags Southern Railway's failures
Each railway zone was required to prepare a dedicated master plan or long-term perspective plan to cut energy costs. The non-availability of such plans was raised by CAG with the Electrical Engineering Directorate of MoR in August 2022.
Southern Railway headquarters, Chennai
CHENNAI: Southern Railway (SR) has fallen abysmally short in implementing various energy conservation measures recommended by the Ministry of Railways (MoR).
From failing to prepare a master plan for energy conservation measures to not obtaining the consent of state-run discoms (power distribution companies) for procuring electricity through open access, SR’s failure has been documented by the office of CAG, in a recent report.
Each railway zone was required to prepare a dedicated master plan or long-term perspective plan to cut energy costs. The non-availability of such plans was raised by CAG with the Electrical Engineering Directorate of MoR in August 2022.
However, the audit revealed that only Northwestern Railway prepared an annual action plan. The remaining 15 ZRs, including Southern Railway, did not prepare any Master Plan, the CAG said in the report, 'Energy Management in Train Operations and Renewable Energy Initiatives by Indian Railways' for FY22.
It said non-shutting down of stationary diesel locomotives was noticed in 10 divisions of seven ZRs, resulting in the detention of loco in on-position beyond 30 minutes on 5,45,352 occasions for 35,41,594 hours during 2017-18 to 2021-22.
One of the key energy-saving reforms was obtaining open access from state electricity boards/companies (discoms), which has resulted in huge cost savings for Railways. Before getting open access, IR was procuring traction energy from respective state discoms.
Open access was obtained in 11 states.
Except for SR and ECoR, all other zones were procuring energy at different rates ranging from Rs 6.25 (SER) to Rs 12.96 (NWR) per unit. From 2017-18 to 2021-22, these 14 ZRs procured energy under open access from other suppliers in these 11 states at an average of Rs 5.87 per unit under open access.
Discoms of Tamil Nadu, West Bengal, Andhra Pradesh, Chhattisgarh, Odisha, Kerala and Telangana did not grant NOC. In Maharashtra alone, Rs 600 crore per annum (Rs 3.50 per unit saving for 180 crore units) was saved after the zonal railways started availing power under open access.
Due to open access in only 11 states, zonal railways saved Rs 24,527 crore from November 2015-16 to 2021-22, against targeted Rs 22,815 crore. Even in the 11 open-access states, the uniform policy for tariffs is not being adopted.
WHY FUEL ON BOIL
~ After salary and pension, fuel is the third highest cost component in revenue expenditure for Railways
~ Fuel cost accounted for 15.81%, 16.54%, 16.71% and 14.13% of working expenditure during FY(s) 2018, 19, 20 & 21
~ 2015-16 budget proposed Mission 41K, saving Rs 41,000 cr in energy bill by 2025 by cutting power use, greenhouse emissions
~ Southern Railway among 15 zones that didn’t prepare any energy conservation masterplan