Saddled with a higher power tariff in Maharashtra and registering about five per cent rise in freight earnings, Central Railway is contemplating buying power from Gujarat to lower its power bills.

The recent hike in electricity tariff from ₹6 to ₹9 a unit has made the country’s largest suburban rail network, which ferries over 42 lakh commuters each day, to scout for an alternate power source.

Central Railway, on an average, consumes about 160 million units a month, which translates to about ₹144 crore. The railway zone’s fuel expenses for FY14 amount to ₹2,729.79 crore (as per revised estimates).

In a chat with BusinessLine , SK Sood, General Manager, Central Railway, spoke of the predicament due to the sudden rise in power tariff and the steps being taken to reduce fuel consumption.

Is it possible to shift your power purchase to another State?

Suddenly, Maharashtra has increased the tariff. We are paying close to ₹10 per unit whereas Gujarat has offered electricity at about ₹5 to ₹6. If, somehow I can buy electricity from Gujarat for my trains, I will be better off.

We will see the outcome of the Assembly elections in Maharashtra. Normally, very few governments tax the railways. It is happening in Maharashtra and we are thinking of going to Gujarat or some other suppliers such as the Tatas — even their rates are cheaper. We have a facility that we can take anywhere on the grid. The Board is trying that and we are also working on it. I will have to go to the Railway Board and request them to allow us to take electricity from anywhere on the grid.

Provisional figures for freight show that you surpassed the FY14 target (55.77 million tonnes versus a target of 55.2 million tonnes of originating freight)?

Freight movement is growing steadily at the rate of about five per cent or so. We have met our target.

Your predecessor said the cement business is moving. Is it still a concern or has it improved?

We are not losing cement traffic. It is steady, as of now.

Are you concerned about losing traffic to Gujarat ports?

That is logical, as more and more ports come up, railways will continue to lose business. There is no point in moving goods through rail by a longer route if it has to go towards the north side. Earlier, these ports were non-existent. Now that they have come up, the cargo for the north will move from these ports only.

We have reconciled to the idea that our leads will become shorter. It is good for the nation because more ports are coming up and getting used productively.

What is the per km running cost of electric and diesel locos?

Electric is far cheaper, but that also depends on the tariff.

How about your fuel consumption?

Fuel consumption is not a problem for a loco running at top notch – the eighth notch.

Diesel locos are fine-tuned to run at the highest notch. The problem comes when it runs on the second and third notch, especially during shunting, when it becomes less fuel efficient.

Efficiency can be improved by the use of CRDI (common rail direct injection) technology like in cars. The technology is being introduced and we will try to do something if we get funds for it. It is a project of about ₹2 crore. We will try to introduce CRDI in about 50-60 locos — which always works at the lower notches. It will give us about 10 per cent fuel savings on these locos. We have about 200 locos in total.

Can you alter the engine and introduce CRDI?

CRDI is a retro-fitment. Total cost per loco would work out to roughly ₹50 lakh.

What is the update on doubling between Bhigwan and Mohol and Hotgi to Gulbarga on the Mumbai-Chennai-Bengaluru route?

Work is going on in patches. I was told that RVNL last year informed Railway Minister Kharge of completing it by 2015-end. After next April, RVNL will need about ₹900 crore to finish the project.

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