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

Random Stories

Chirang bandh

1 Jul 2015 - 1:56pm | Hantigiri Narzary
Normal life was paralised in Chirang following 12-hours Chirang district bandh today called by All Bodo Students Union(ABSU) in protest against custodial died of one Rtaneswar Brahma,a civilian of...

Armed miscreants held in Guwahati Rly station

10 May 2012 - 1:22am | editor
Security forces seized arms and ammunition from a person who claims to be a Nagaland Police constable at the railway station in Guwahati on Wednesday. Identified as Pradeep Kumar, GRP caught him when...

Media Fellowships on TB Awareness

20 Mar 2015 - 6:56pm | AT News
The State TB Cell, Assam in association with Guwahati Press Club has invited proposals for two media fellowships on Tuberculosis (TB) from mid-career journalists of the State for a period of two...

Chopper wreckage found in Thinsa

10 Aug 2015 - 12:33pm | AT News
The wreckage of the Pawan Hans helicopter Tirap Deputy Commissioner Kamalesh Joshi was found at a remote area of Arunachal Pradesh where it crash landed on Tuesday.The rescue operation made with...

Other Contents by Author

The recent slow down in the global economy has seriously affected the business of micro and small scale industries in Assam. This has coupled with existing road blocks and pushed back this most employment generation sector into dire straits. While the global recession can not be tackled easily, the many existing impediments can easily be removed by the state government intervention,’ said B L Agarwal and J N Baruah, the president and general secretary respectively of the All Assam Small Scale Industries Association. They were addressing the media persons in Guwahati, recently. Agarwal said that the existing VAT laws in Assam are heavily loaded against the local industries. If...
The formation of a Congress-led government in Mizoram has brought a number of problems for the people of the neighboring state of Assam. The Bhuvan Pahar, one of the most holy places in Barak valley of Assam has come under the threat of miscreants for last two months... Gun totting members of a newly formed militant organization, namely, Manmasi National Christian Army (MNCA), comprising about fifteen rebels, has been forcing the Hindu residents of Bhuvan Pahar, under the threat of gun to convert to Christianity. This came to the notice of Sonai police station, which along with the 5th Assam Rifles, conducted a search operation, which led to the arrest of 13 miscreants, including...
Now since Lok Sabha polls are over and the people have given their verdict, it is time to think over the positive approaches towards the country’s develop0ment. United Progressive Alliance (UPA) has succeeded in retaining power despite a number of allies rejected by the electorates. This election has given a clear picture of ‘opportunists’ sharing power with intention to enrich their families and accumulate more wealth for themselves at the cost of the people below the poverty line (BPL). Such people were spread throughout all the regions of the country. Despite most of them thrown out of power, some of them are trying to come back by any means. The new government coming...
May Day is observed throughout the world every year on 1st day of May. This year too it has been observed with great enthusiasm by the working class people, despite their sufferings for earning two meals a day for their family. Hardships in the lives of workmen have reached at a point of no return. The aims for the May Day celebrations are lost in present economic globalization. The legislations aimed to protect the rights of workmen have failed to protect them. The rich and affluent class of people are controlling the economy and increasing their capital and wealth day by day. On the other hand the people in the lower groups of society are putting efforts to keep their identity intact and...
Science Express is a state-of-art science exhibition on a train traveling about 17,000 kilometers and covering 51 cities around the country in the current phase. It is a modified version of the earlier Science Express, an Indo-German collaborative project that was flagged off by Indian Prime Minister, Dr Man Mohan Singh and German Chancellor Dr Angela Merkel. It was visited by 22.53 lakh people in 57 cities across India.The 16 coach, fully air conditioned train, hosts the exhibition developed by Max Planck Society, Germany, showcases India’s achievements in science and technology and has the joy of science hands-on lab for conducting science experiments. The exhibition with more than...
‘Persons with disabilities are among the most disenfranchised sections of society. Although the Constitution of India guarantees equality to all its citizens and the Persons with Disabilities Act, 1995, guarantees equal opportunities, protection of rights and full participation for all persons with disabilities, the reality is something quite different’, said Ms Anju Talukdar, Coordinator, Disability Law Unit-NE, Human Rights Law Network (HRLN), addressing the media persons in Guwahati.The Disability Law Unit-NE is a project of Shishu Sarothi, an NGO working for the empowerment of persons with disabilities. Human Rights Law Network is a collective of lawyers and social activists...
The traders strike in Guwahati against hike in trade license fees was a grand success despite a ‘misrepresentation’ by Kamrup Chamber of Commerce (KCC). All Guwahati Traders’ Association (AGTA), a federation of several retailers’ organizations gave a call for 12-hour trade strike on 18th April, in protest of three times hike in trade license fees by the Guwahati Municipal Corporation (GMC). Another federation of merchants, namely, Assam Chamber of Commerce (ACC) also launched agitation on the same issue. But the Kamrup Chamber of Commerce (KCC), representing big business houses and wholesalers, controlling the economic affairs of Guwahati as well as the entire...
It has been noticed during each and every election that the political party leaders utter too much against their rivals, but keep silence on their own performance. All the political parties have some merits as well as demerits, but they play ‘hide and seek’ by concealing their drawbacks and exposing others. It is not a fair practice in any way. The electorate demands the details of the works done by the ruling party and what they want to do in future. On the basis of that they decide whom to vote to the power. The voters of 21st century are now literate and very cautious. They can not be fool now. Since the 15th Lok Sabha elections in the country are in progress and some of our...
More than sixty five thousand small tea growers of Assam are facing uncertain future due to unilateral decision of state government, imposing surcharge on green tea leaves at the rate of 20 paisa per kg in addition to a fine of Rs 200 per Bigha, with effect from July 1, 2003. For more than three decades since the year 1978, indigenous youths of Assam with their capital and labor established more than 65 thousand small tea gardens in the state. These tea growers through schemes of self-employment, earned livelihood for their families. Besides that, they provided indirect rehabilitation to about nine lakhs people. These tea farmers helped in building socio-economic structure by producing...
The Constitution of India has given the rights to the people to elect their representatives for state Assemblies as well as the Parliament. The elected representatives form the government to look after the people’s welfare and provide transparency in administration. Such representatives in this democratic country form a government on the basis of major votes polled in their favor. The Constitution of Indian Republic came into force with effect from 26th January 1950. Long sixty years have passed and a lot of changes have taken place since then. Hundreds of amendments have been made in the Constitution during all these years. At the time of enforcing the Constitution prepared during...