The Hindu Business Line : 3-phase locos a money-spinner

ACCORDING to estimates prepared by experts at Chittaranjan Locomotive Works (CLW), Indian Railways' own electricity generation from 3-phase locomotives will reach 200 million units plus per annum by 2007-08.

As on date, 120 3-phase locos held by IR regenerate/cogenerate 60 million units (kWh) of electricity per annum. It is pointed out that at an all-India average purchase price of Rs 4.21 per kWh, these locos could contribute to the exchequer Rs 21 crore in 2005-06.

In short, it may become a money-spinner for the Railways.

According to sources, this would mean that these locos, which have a combined purchase price of Rs 1,500 crore (Rs 13 crore a piece) and a useful economic life of 35 years, would contribute Rs 880 crore from free power generation alone. This adventitious gain will bring down the cost of a 3-phase loco from Rs 13 crore now to Rs 5.67 crore.

The 3-phase locos, when kept running, are expected to automatically become self-debt servicing, given the vast scope for deployment in some of the Railways, which have long graded sections. It can be fruitfully engaged in two parallel lines of businesses - hauling traffic and incidentally generating free-of-cost power.