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.

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

Stage set for Adivashi Mahasabha session

17 Jan 2018 - 4:26pm | AT News
TANGLA:  The stage is set for 15th Adivasi Mahasabha  to the Aba Justin Lakra ground in Tangla from Thursday. A huge plot measuring  100 bigha paddy has dressed afresh to hold the...

Ray of hopes on HSLC results

2 Jun 2015 - 11:09pm | Hantigiri Narzary
Despite regular bandh and strike in Kokrajhar, heart town of BTAD administration, the Bimala Prasad Chaliha Memorial (BPCM) Babyland English medium school, Kokrajhar has scripted 99 percentage passed...

Signature campaign by students union

30 May 2013 - 10:22am | Ritupallab Saikia
Members of Golaghat Regional Students’ Union today started a week long signature campaign demanding solutions to various problems of Golaghat town. In a press release it was stated that the citizens...

Citizens urge Government for pro-active Role in Wildlife Conservation

1 Jan 2012 - 1:23am | editor
A citizens meeting at Guwahati Press Club yesterday expressed serious concern at the increasing rate of killing of tigers in various parts of Assam and urges the State government to activate the...

Other Contents by Author

Despite many differences with the sayings and doings of the Chief Minister, Tarun Gogoi, I share at least one of his views on an occasion that the people of Assam are ‘emotional’. He is right, I agree since watching the various affairs through which the state has passed and the CM has succeeded in having the reign of state administration successfully for about one and a half decades. Since the beginning of last phase of 20th century, I recall the memories of Assam agitation against the foreigners issue in the state right from  the year 1979. The students and the general public under the banner of All Assam Students Union (AASU) and Asom Gana Sangram Samiti (AGSS) brought the entire...
More than two hundred villagers and beneficiaries of Indira Awaas Yojana ( IAY ) scheme , under Raha revenue circle ,today staged a demonstration in front of the Block Development Office ,Raha.The demonstrators shouting slogans against Ataphoor Rahaman, BDO , Raha block alleged that their funds meant for the construction of their IAY house were not released for several months by the BDO due to the fishy deal between the BDO and Raha MLA Piyush Hazarika. Later , talking to the media the BDO also confessed the allegations leveled against him by the demonstrators and agreed to release the funds.
It’s rightly said, ‘where there is a will there is a way’. It has come true in the life of a school teacher from the remote northeastern state of Tripura, which lags behind the facilities in the field of development in many respect. Sujit Bhowmik, a retired science teacher from Government school, Agartala has earned a number of achievements to his credit during his tenure in service and has continued his efforts even after his retirement. He contributed a number of articles related to health, environment and wildlife etc; in English and Bengali language newspapers and periodicals. Several books he has got published so far with him minimum source of income.Now, he has come out with a single...
Recent controversy between Assam Governor, Padmanabha Balkrishna Acharya and Chief Minister, Tarun Gogoi over the issue of rhinos killings in state has brought a number of questions in the mind of the people regarding danger to the life of world famous one-horn rhinos.  A large number people have started thinking whether the elimination of the state symbol is ‘state sponsored’ one?. Large number of brutal killings of famous rhinos in the state have come into light through media continuously for a long time, but the state administration seems to be uncared and unmoved on this serious subject. The head of the state as a citizen of India has every right to express his views and anguish on...
For film enthusiasts of Assam and the Northeast  region of the country, an  intensive workshop has been designed and developed by the Institute of Moving Images, a well known film school from Mumbai, which will be conducting a workshop at the State Art Gallery from  March 15. The classes will be held for two months on every Saturday and Sunday from 2 PM to 7 PM.Pankaj Roy, the director of the IMI, a seasoned film and TV programme producer and director, addressing the  media persons at Guwahati on March 2, last informed that during the two months weekend workshop the members would write, shoot and edit four short films of their own and assist others in 20 student film...
In a significant development in which India failed to take-up issues with the Chinese government, Bangladesh has dared to push the issue relating to both the neighboring countries.  According to a media report Chinese government planned to construct several mega dams and hydro projects in Brahmaputra (Lohit) basin in Tibet’s Jangmu and Great Bend region. Bangladesh opposed the Chinese plan through a strong letter from Dacca to Beijing. A copy of the letter from Bangladesh’s foreign office was also sent to Bangladesh high commissioner’s office at New Delhi and Chinese embassy in Dacca. Bangladesh through this letter suggested to hold a three-party meeting among China, Bangladesh and...
Durniti Birodhi Manab Adhikar Suraksha Mancha (DBMASM), an NGO has challenged Assam forest minister, Rockybul Hussain, for his misleading and indecent behavior against Krishak Mukti Sangram Samiti (KMSS) leader, Akhil Gogoi as shown on a local leading TV channel recently. The Manch president, Pradip Baruah, has alleged in an open letter addressed to the forest minister on his claim as ‘absurd’ that he has proved hundred percent successful forest minister. Baruah has ridiculed the minister’s claim and asked him to prove his success in saving the rhinos or in getting them killed? He has drawn his attention on the regular media reports of killing rhinos in the state.The Manch president...
Assam Chief Minister, Tarun Gogoi, is perhaps the supreme stalwart in the country, who dared to under-estimate the Prime Minister, Narendra Modi’s dynamism, capability and strength. On most of the occasions, he seems to have challenged PM, Modi in order to prove ‘himself ‘ as better being’ proud’ of ruling the state of Assam for last fourteen years. He claims himself better administrator, because he has gained mastery in dividing the people on different issues, which he has hired from the past British rulers of the country. The simple and humble people of Assam fall prey of the false stories of development without moving out to find the truth about such developments. Those who oppose and...
India accounts for nearly 69 million people living with diabetes according to a report published by the International Diabetes Federation (IDF). According to latest IDF estimate the worldwide 382 million people are living with diabetes. India is known as the Diabetes capital of the world. November 14 is observed as the World Diabetes Day. The North Eastern Diabetes Society (NEDS), a non-profit organization of prominent diabetologist and endocrinologist of the North-east is celebrating this day in Guwahati in a grand way. This day was chosen as the birthday of Fedrick Banting, a medical scientist who co-discovered Insulin and was the first person to use it on humans.Diabetes in Indians is...
It is more than six months, when Guwahati Municipal Corporation (GMC) decided to construct four city markets buildings at a time and in a hasty action a ‘mockery of foundation stone’ laying ceremony of four markets were done by nobody else than the Assam Chief Minister, Tarun Gogoi himself at a single place located in densely populated area of Ulubari. The existing Ulubari GMC market had to bear the brunt of damages of the stalls created by the poor traders of the market for the function. GMC Commissioner and Mayor along with some other GMC officials approached the office bearers of the Ulubari Bazar Committee on March 4,2014, with the information that the foundation stone laying ceremony...