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

CITU protest against Labour reforms

6 Sep 2019 - 9:05am | Nikhil Mundra
Hojai District Unit of Centre Indian Trade Union (CITU)  took out a rally on Thursday as a mark of their protest against the move of central government on Labour Law reforms. The rally after...

Veer Birochan Chutia memorial

18 Sep 2015 - 10:07am | Siddhartha Handique
The people in a huge area of Golaghat district on Sunday are all set to revive the real contribution of a forgotten hero whose name is missing in the history because of the conspicuous ignorance of...

Husband and in-laws sentenced

1 Jun 2013 - 11:03pm | Ritupallab Saikia
The Assistant Sessions Judge of Golaghat, R.L. Das, yesterday sentenced the mother, the son and the daughter to undergo rigorous imprisonment for six years each and to pay a fine of Rs.2000/- each in...

Meeting on flood preparedness held

24 Feb 2017 - 9:49pm | AT Kokrajhar Bureau
A flood preparedness meeting under the presidentship of Kokrajhar Deputy Commissioner Bibekananda Choudhury was held in Kokrajhar on Friday. Various subjects, including vulnerability assessment,...

Other Contents by Author

The BJP detractors, the four Members of Assam Legislative Assembly, who defied the party whip during recent Rajya Sabha elections and cast their votes in favor of the candidates of Congress Party, now seem to have facing a tough time to save their political career. They have around them a bitter atmosphere in their constituencies and their high dreams are shattered. Now they have the only alternative to join the Congress Party, for which they are trying their best. The Assembly elections in Assam next year may put them in difficult situation for various reasons. None of the political parties would like to have such ‘salable items’. It may be mentioned here that four...
Hundreds of people representing Bengali, Manipuri, Naga, Khasi, Reang, Dimasa and other communities living in southern part of Assam district staged demonstration in front of Deputy Commissioner's office at Silchar last week demanding total scrapping of controversial Tipaimukh Dam to be constructed on Barak River. During the demonstration they shouted slogans condemning government’s attitude and demanded immediate scraping of this project. Pijus Kanti Das, Secretary General of Committee on Peoples and Environment (COPE) and a number of leaders from different organizations and groups joined the demonstration before the DC’s office. It may be mentioned that the people, both in...
Under the aegis of Directorate of Cultural Affairs and Assam State Film Finance and Development Corporation (ASFFDC), Film Award Festival -2010, was formally declared open by Assam Chief Minister, Tarun Gogoi at the Rabindra Bhawan on March 10 last. The celebration of 75 years of Assamese cinema was graced by presence of a number of dignitaries in the field, prominent among them were Parikshit Sahani, Seema Guha and Jahnu Baruah. Veteran film director, Jahnu Baruah conferred Pabitra Kumar Deka Memorial Award for the best film critic announced by the Assam Cultural Affairs department on Assamese films, to Azhar Alam, a senior journalist of Pratah Khabar, a Hindi Daily, published from...
Despite reluctance of Assam Chief Minister, Tarun Gogoi to go for inquiry by the Central Bureau of Investigation (CBI) in Rupees one thousand crore scam of North Cachar Hills development fund, as demanded by the Opposition parties of the state, he had to bow down and decided to go for the same after getting advice from the Union Home Ministry. According to the news item published by The Week, the National Investigation Agency (NIA), had earlier suggested that since there were the evidences of nexus between the militants, politicians and government officials, the government should go for the probe by the CBI, but the chief minister did not agree to the suggestion. He repeatedly denied...
The North East NGO Forum has shown concern over distribution and diversion of funds for development of the North Eastern region of the country by Ministry for Development of North Eastern Region (DoNER). Addressing the media persons, Paresh Chandra Baishya, the general secretary of the organization, alleged that the funds for development of the north eastern region is being given to the organizations of other states by the ministry of North East Region’s Development (DoNER). Giving a few instances he said that during the year 2008-09, rupees twenty three lakhs were given to the Government of India’s Administrative Staff College, Hyderabad. During the same period Indian...
Burma’s largest political party, National League for Democracy (NLD), which won 392 seats out of total 492 parliamentary seats, in the country’s general elections of 1990, could not form its government even after its landslide victory, as the military junta regime ignored the verdict of the people and refused to hand over the power to NLD. That was a blatant mockery in the name of election in Burma. It may be recalled that the people of that country have not forgotten the days when due to deterioration of Burma’s economic situation and oppressive one political party rule on August 8, 1988 (which is also known as 8-8-88), when the workers, monks, peasants, teachers,...
Abductions, extortions, killings and all sorts of violence have their roots in certain forms of corruption. Since the last part of twentieth century and the beginning of twenty-first century, all types of violence throughout the world have increased day by day. Those did not take place overnight. The Indian society had also to bear the brunt of such evils. The frustration among the poor and deprived people in the country was brought due to corruption. Money and muscle powers took lead in spreading these ills. The rich and influential people began to acquire more and more wealth and property, whereas the poor and innocent had to lose even what they had. In administration the number of...
Cine Arts Society, Asom is organizing second Cine ASA Guwahati International Film Festival from January18 to 24 at Rabindra Bhawan, Gauhati University, IIT Guwahati and Jonakee, Panjabari. This year’s programme is being inaugurated by Assam Governor, Janaki Ballav Pattanayak at Rabindra Bhawan on 18th January. Eminent Sri Lankan film maker, Prasanna Vithanage would be the Chief Guest at the function and his film Akasa Kusum would be the inaugural film. His other films will be screened in the Jewel of Asia section of the programme. The festival programme includes a retrospective of Pedro Almodovar, a tribute section on the works of acclaimed South Korean filmmaker Kim Ki Duk, a...
Although delayed, a ray of hope has been seen in better Indo-Myanmar relations with accepting the Indian proposal by Junta government of that country to open Stilwell Road, which will encourage and boost India’s trade with the South-eastern Asian countries, especially with China. The Foreign minister of Myanmar, Nyan Win, has agreed to the request of Indian Chamber of Commerce (ICC), at a recent meeting in Kolkata to this effect. With the opening of Stilwell Road, distance between India and China via Tenai in Myanmar will be cut to the minimum. The minister informed that China has already constructed road up to Tenai and he has offered to construct the balance part of the road with...
A dozen of touching stories, each illustrated with a beautiful photograph, make up the 2010 calendar from People for the Ethical Treatment of Animals (PETA) India, has been released to mark the organization’s Tenth anniversary. Each month features a brief description of an animal’s life before he or she was rescued as well as a photograph showing how he or she has fared after the rescue. In addition, each story is accompanied by information on how to avoid contributing to animal exploitation. Mahesh Hiramath was working in his field near the village of Kupwad when he saw a herd of horses being driven past. He noticed that one young animal was severely wounded, bleeding and...