Mumbai: Cheaper power is in store for the suburban railway network, a move that may ultimately help make the loss-making services a profitable venture.
The railways has also begun saving power because of the DC-AC conversion on the western and central lines. The monetary saving has been about Rs.120 crore annually.
The Ratnagiri Gas and Power Pvt Ltd (RGPPL), popularly known as the Dabhol project, is slated to extend 500 MW to the railways from November 1, and nearly 250 MW of the supply is likely to be used t operate the suburban network.
The state cabinet on Tuesday agreed to grant special concessions to RGPPL to help start power generation. The allocations are to come under the Centre’s power system development fund.
While the per unit cost of power the railways today gets is Rs 7.50, the RGGPL electricity will cost Rs.5 to 5.50 per unit.
A 1,967 MW capacity plant at RGPPL is completely shut in the absence of gas and naphtha. The decision of the cabinet will pave the way for cheaper gas allocation to the plant.