Indian Railways starts Procurement of Power in Punjab for Northern Railway as Deemed Licensee under Open Access
“Mission 41K” document targets for saving of Rs. 41,000 Crore through integrated Rail Energy Management System by 2025
Indian Railways is now taking about 1400 MW (70%) of power under open access as a deemed licensee in 11 States
Indian Railways have been embarking upon various initiatives to reduce the cost of operations. One of the major initiatives in this regard has been direct procurement of power as deemed licensee instead of the consumer.
“Mission 41K” document targets for saving of Rs. 41,000 Crore through integrated Rail Energy Management System by 2025. Railway Energy Management Company Limited (REMCL), a JV of Ministry of Railways and RITES Ltd., has been endeavouring to achieve this target by gradual migration from Consumer to Deemed Licensee.
Deemed Licensee status enables Indian Railways to buy electricity directly from any generating company by paying wheeling charges to Central and State transmission system under open access as per the Electricity Act,2003.
In this sequence, Indian Railways has commenced flow of 35 MW power in Punjab for 11 traction sub-stations w.e.f. 24.11.2019 which will result in an annual estimated saving of Rs. 56 Crore per annum on a recurring basis. With the addition of Punjab in the portfolio of open access, Indian Railways is now taking about 1400 MW (70%) of power under open access as a deemed licensee in 11 States.
These efforts are resulting in an annual saving of over Rs. 3500 Crore per annum and a total saving of over Rs. 12000 Crore since the commencement of power under open access w.e.f. November’2015 onwards on business as usual mode.
These initiatives will pave the way for reducing the financial burden of Indian Railways. These efforts have resulted in keeping electricity price at the most economical rate on a sustainable basis since 2015 on Indian Railways.