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SER starts purchasing power directly from gencos

01 Mar 2016

South Eastern Railways (SER) has started forging direct power purchase agreements (PPA) with private power generation companies (gencos) in Odisha and Jharkhand, a top official told ICMW.

“The direct purchase of power has resulted in a saving of Re 0.90-1.00 per unit of electricity,” said A K Goel, General Manager of both Eastern Railway and South Eastern Railway.

Railways was earlier sourcing traction power from state utilities and state electricity boards.

Earlier, in October 2015, North Central Railway (NCR) had signed a PPA with Adani Power for sourcing 50 MW of power at Rs 3.69 per unit over three years. Before signing the PPA with Adani Power, the NCR had been procuring power through state utilities at an average price of Rs 6.75 per unit.

Through this PPA, Railways could save up to Rs 150 crore on its electricity bill this fiscal. 

Adani Power would be supplying the electricity from its 4,620-MW power plant at Mundra in Gujarat.

In addition, Railways has also tied up with Ratnagiri Gas and Power Ltd (RGPPL), the operator of the Dabhol power plant in Maharashtra, for procuring 500 MW at Rs 4.70 per unit. It has also floated a tender seeking 585 MW of power for various states on behalf of Zonal Railways.