Skip to content Skip to navigation

Railways’ electrification may result in losses

Indian Railways have planned early electrification of entire tracks in the country without imagining the problems to be faced by the people in future. So long the government’s scheme to electrify all the villages of the country is not properly implemented and most of villages are still waiting to see the light of electricity. Side effects of the Railway’s hasty decisions may put the country in great problems. The government should re-think about the plans and programmes and should not try to implement it for political gains.

It may be noted that every electric locomotive of 4.5 MW (6000 HP) deprives 15,000 households of their electricity needs and 14.7 percent villages in the country are yet to get electricity.

Every electric locomotive of 4.5 MW introduces 4,500 highly inefficient small generating sets, which cause more pollution and consume six times more fuel than a diesel locomotive.

World’s modern and advance economies like USA and Canada have less than one percent electrification against Indian Railway’s 41.7 percent.

All profit making Railways of the world are having predominately diesel traction, while all loss making Railways are predominantly electric traction Railways.

Diesel loco hauled passenger trains are 41 percent cheaper than electric hauled trains.

Electric traction requires huge capital investment of Rs.63 crore per loco in overhead wires, Transmission lines, and power plants as against Rs.3 crore only on diesel traction.

Energy bill of Railways for the year 1998-99 was more than Rs.2800 crore for hauling about sixty percent freight traffic and fifty percent passenger traffic against fuel bill of about Rs1500 crore for the balance BG traffic.

As per Executive Directors’ Committee set up by the Board in 1996, the Break even level is 49.72 GMT (Gross Million Tonnes) per annum. Sections currently being electrified have 5-10 GMT of traffic density.

For the price of 100 energy units (kWh) one could buy10.9 liters of HSD in 1963 against 41.2 lures in 1999. This amounts to a 16 times hike in diesel prices while electricity prices have gone up by 60 times in the same period.

Gujral Committee of 1990 recommended 214 kilometers of electrification per year. Current rate is 2.33 times.

Electrification projects are being justified based on inflated rate of return (ROR) worked out on the basis of wrong assumptions- benefits are overstated and costs understated.

As per Railway Board’s norms, projects with a minimum ROR of 14 percent should be undertaken (Railways are borrowing money through IRFC at about 17-18 percent). Electrification projects such as Ludhiana-Amritsar and Patna-Gaya which are now being undertaken are having RORs of only 4 percent and 6 percent respectively, even as per calculations made by the Central Organization for Railway Electrification taking wrong data. The actual RORs calculated on the basis of correct figures for expenditure as well as benefits turn out to the highly negative. In the case of Ludhiana-Amritsar electrification project, Planning Commission had also commented that such projects are likely to eat into the national wealth rather than generate additional wealth.

No post-complexion evaluation of benefits was ever done on any of the electrification projects. World Bank report of 1995 concluded that the rate of return on two of the busiest sections of Indian Railways i.e. Vijaywada-Balharshah and Jhansi-Itarsi was on two percent and nine percent as against the projections of 41 percent and 23 percent respectively.

Fifty three percent of total price of HSD goes to the government exchequer in the form of various levies-Customs/Excise, Cess etc.

If the losses of SEBs are amortized, the cost of energy to the consumer including Railways will be much higher.

Indian Railways are losing Rs.1900 crore per year on account of electrification, Rs.600 crore per year as running losses (due to higher operating costs on electric traction as compared to diesel traction), besides Rs1300 crore per year as the interest on capital cost of electrification.

Unviable electrification is resulting in crippling of railways fiancés. The operating ratio (expenditure divided by earnings) for Indian Railways, which was 82.5 per cent in 1995-96 has deteriorated to 98.8 percent for 2000-01 (as budgeted) even while Railways will be deferring their dividend payment to the Central Government during the year. In case dividend is paid, operating ratio would be beyond 100.

When electrification projects have ceased to be justified based on breakeven level of traffic of 49.7 GMT as well as 14 percent ROR, other reasons are being given to undertake these projects. For instance, electrification of Ludhiana-Amritsar section is sought to be justified for security reasons. The truth is that overhead wires as well as other traction installations, such as sub-stations etc; are highly vulnerable to attacks by terrorists. Similarly, electrification of Patna-Gaya section is ostensibly being done to cater for suburban passenger traffic. This section, which is a single line section, hardly has any traffic and carries only five pairs of passenger trains everyday and just one goods train in a day. Diesel traction in any case is cheaper for passenger services.

Contrary to popular perception electric traction is more polluting than diesel traction.

The ‘green house’ gases emission in case of power generation from coal is 26 percent higher than that for a diesel locomotive for the same amount of power generated (UNDP study). Considering the transmission losses associated with the distribution of power, electric traction is about 65 percent more polluting as compared to diesel traction.

Generation of one MW of power requires ten tones of coal everyday. Since coal in India has an ash content of 40 percent, this results in generation of 4 tonnes of coal ash everyday. Thus, one electric locomotive requiring 4.5 MW of power is responsible for generating of 18 tonnes of coal ash everyday.
Author info

Daya Nath Singh's picture

Journalist; Guwahati Press Club office Secretary

Comments

Anil's picture

We disagree with u. elecric traction is cheaper and fuel efficient as well as less polluting.please do not misguide

Pages

Add new comment

Assamese Translator

Assam Times seeks English to Assamese translators!
Join our volunteer team.
Email editor@assamtimes.org.

Random Stories

Hagrama hoists national tri-colour flag

26 Jan 2016 - 4:16pm | Hantigiri Narzary
BTC chief Hagrama Mohilary hoisted national tri-colour flag while celebrating the 67th Republic Day at Govt Higher Secondary & MP school ground today in Kokrajhar.  Mohilary, in his speech...

Shocking indeed: Gogoi in Narayanguri

7 May 2014 - 11:35am | Jintul Talukdar
Chief minister Tarun Gogoi on Monday found it very shocking when he visited the Narayanguri in Baksa where armed miscreants killed at least 20 people a couple of days back.Gogoi arrived in...

Rijiju draws ire on statehood remarks

4 Jan 2018 - 8:24pm | AT News
KOKRAJHAR: Union minister of state for home Kiren Rijiju has drawn no less ire in BTAD areas on Thursday a day after he told in Parliament that the Centre has no plan for separate statehood. Many...

Patharighat remembers Martyrs

29 Jan 2008 - 4:54pm | Daya Nath Singh
Army's Red Horn Division organized a public rally on 29 January 2008 at Patharighat in Darrang district, bout 70 kilometers away from the state capital Guwahati, to pay homage to the martyrs, who had...

Other Contents by Author

Gamusas and Japis are two important items in Assam, which are in much demand throughout the year in the state especially during festival seasons and social functions. These items are demanded by the people to honor the guests and honorable persons during each and every event.  However, it has been found that throughout the festival seasons the supply of locally woven gamusas are not according to demand by the customers. The reason behind it is said to be heavy cost of the locally produced items. On the other hand the weavers and traders from other parts of the country take advantage of supplying gamusas at cheaper rates and make more profit despite spending heavy cost on...
Archaeological Survey of India, Guwahati circle, has been trying to take-up the work of repairing of a broken pillar in the Mandap of Hayagriva Madhav Temple at Hajo for a long time. ASI, Guwahati has informed the media through a press note that one of the pillars of ancient temple was broken in three parts due to rusting of the iron dowels holding each other and the other developed cracks due to the same reason and widened more after the earthquake of May 2015. Hayagriva Madhav Temple is a reconstructed temple during the Koch period. The architectural parts of the earlier temple have been used for reconstruction. Different parts of the temple have been used randomly for making the pillars...
There is a generation gap between the signing of Assam Accord on the Independence Day 1985 and the present generation has to face new challenges to compete with the world class people in all spheres of development. The young people are confused over the airing of old issues which have lasted for long 31 years in absence of any solution. The issues pertaining to the Accord have become irrelevant under the present circumstances. The Assam Accord issue is still haunting and confusing the present generation due to absence of a clear picture. The fate of the Accord is not known to the people in general. A few politicians and intellectuals are trying to raise the issues of the accord from time to...
It is an established fact that a person involved in political activities cannot remain in peace till his cherished dreams are fulfilled. This can be noticed through the recent statements of former Assam chief minister, Tarun Gogoi, who has been expressing his views frequently in media against the four months old BJP-led alliance government in the state under the chief minister ship of Sarwanand Sonowal.  He (Gogoi) dares to demand a ‘white paper’ from state government about the steps taken by it to clear the encroachments of forest and other government  lands in the state and also to let the people of the state know, what action it has taken to identify and deport the foreign...
Addressing a huge gathering of residents of Udaypur, Jonakpur and Birubari at Udaypur Kali Mandir complex on Sunday, July 3, 2016, East Guwahati Assembly Member, Siddharth Bhattacharjee, emphasized the need of implementing the vision document of development as envisaged by the Prime Minister Narendra Modi. Speaking at the function organized by Udaypur Yuva Sangha to felicitate him on his success in the recently concluded polls to the state Assembly, he conveyed his thanks to the people of the area for showing their confidence in him. He assured the people that he would not let their confidence go in vain. The meeting was presided over by Dr Phani Borah. Senior citizen of the locality Kartik...
Hardly a few days ago, the Bharatiya Janata Party (BJP) Alliance has taken the reign of Assam administration the results of efforts made by Chief Minister, Sarbananda Sonowal under the guidance of PM Narendra Modi to bring back black money to the state coffer, has started recently with the arrest of Dhemaji Divisional Forest Officer, Mahat Chandra Talukdar by anti-corruption department. For a long time the reports of wildlife crimes were in the air, but the previous state administration ruled by Congress Party under the three-terms  leadership of Tarun Gogoi did not try to take any action. The former Chief Minister Gogoi was under a wrong impression that the people who gave him a...
A study conducted by B Boruah Cancer Institute, Guwahati, has revealed that during a decade from 2001-02 to 2011-12, cancer cases in the north-eastern part of the country have gone up from 5,404 to 8,708. A campaign, namely, Cycle 4 ride can help control this dreaded disease. In order to raise awareness to fight cancer a lady, namely, Marcellna Sangma, is going to lead a Biker Mission to 600 kms long stretch from Guwahati to Bum La Pass, near Indo-China border in Arunachal Pradesh. The ride is scheduled to be flagged off by Dr Amar Chandra Kataki, Director, B Boruah Cancer Institute, on April 21, 2016.Expressing her traumatic experience with cancer, Sangma, who was a cancer patient a decade...
Being disturbed since the first phase of polling for Assam Assembly on April 4 last, the Assam Chief Minister, Tarun Gogoi is finding it difficult to remember the history of Assam agitation propelled by All Assam Students Union (AASU) since the year 1979 to the Independence Day of 1985, resulting in the Assam Accord which was signed between the Assam Government and the movement leaders in presence of erstwhile prime minister, Rajiv Gandhi. Heavy polling beyond 85 percent of the electorate in the second phase also made Gogoi to think over the majority of young and new voters were not the ‘beneficiaries of getting blankets, yarn and mosquito nets’. They are young, energetic, literate and...
Continuing campaigns for Assam Assembly elections have confused the Assam intellectuals to raise vital issues before the future state legislators and improve the quality of political atmosphere affecting the entire society for quite some time. Almost all political parties have started ‘derogatory’ comments against their rivals for attracting the electorates by their acts and objectives about which they are themselves ignorant. The main reason behind such interpretation is lack of knowledge about the real issues on which the political parties are campaigning. Assam as a state of multi-lingual and religious people continued to be disturbed since the year1979, when several organizations under...
Long awaited North East Graduate Congress, an initiative of Education Research Development Foundation (ERDF) is going to be held from February 26 to 28, 2016. This is the only graduate congress in India being organized by University of Science and Technology, Meghalaya (USTM) in association with RIST and supported by the State Bank of India (SBI). The venue of the congress is the USTM campus at 9th mile, Khanapara. Addressing the media persons in Guwahati on February 14, 2016, the USTM spokesperson informed that the three days congress is aimed to enhance all round development and bring out the capabilities of future graduates through various life skill processes to bring out  their...