The Railways has started receiving cheaper, reliable power from Dabhol power plant in Ratnagiri since morning. It will result in saving approximately Rs 1,000 crore every year.
In fact, Union railway minister Suresh Prabhu tweeted: “This is the railway ministry’s initiative to save energy cost, next step. Power started flowing from RGPPL plant. This will give an annual savings almost Rs 1000 crores.”
Earlier this year, the Railways had decided to buy electricity from the Dabhol plant, offering a lifeline to the 1,967 megawatt (MW) power project now owned by Ratnagiri Gas and Power Pvt. Ltd. The national transporter will, in turn, benefit from lower tariffs.
The proposal to source 500MW from the Maharashtra-based project at Rs 4.70 per unit is part of the railways’ plan to slash its electricity purchase cost to less than Rs 5 per unit from the present average of around Rs 7-8 per unit, sources said.
Ratnagiri Gas has lurched from one crisis to another, including high debt and shortage of gas, since the power plant was commissioned in March 2010 after the government took over the assets of Dabhol Power Company.