Railways, NTPC to set up Rs 4,000 cr power plant

Chennai, Jan 25 (UNI) For the first time in its history, Indian Railways is establishing a 1,000 MW power plant jointly with the National Thermal Power Corporation (NTPC) at Nabi Nagar in Bihar, Railway Board (Electrical) Member Ramesh Chandra today said.

In an informal chat with newsmen here, Mr Chandra said while the NTPC will meet 76 per cent of the total project cost of Rs 4,000 crore, Railways' share will be 435 crore or 24 per cent.

The coal-based utility would be ready for power generation within two years from the date of commencement of construction work.

The power from the project will be used by Railways for operations in Maharashtra, Gujarat and other northern regions.

Asked if there was any specific reason for establishing the power plant in Bihar, Mr Chandra said coal was available in plenty in the area.

He said they were holding a dialogue with the Ministries of Power and Finance for reducing tariff on power supplied by the NTPC to the Railways.

The NTPC was supplying power to various State Electricity Boards at Rs 1.60 per unit while it was Rs five per unit for the Railways.

If they agreed to reduce the tariff considerably, the Railways would be in a position to save at least 26 per cent of its operational cost.

He also pointed though several private companies operating captive power plants were approaching the Railways for supply of electricity at a reduced rate, it was not interested in it.

Since NTPC was the country's number one power generating concern, it would be far better for the Railways to approach the NTPC for reducing the power tariff.

He hoped the NTPC would accept the Railways demand as it was for the benefit of the people.

To a question, Mr Chandra ruled out the possibilities of the Railways establishing more power plants on its own or joint ventures.

Responding to an another question, he said the Railways proposed to electrify 3,500 route km during the XI Plan as against 1,800 route km in the X Plan.

UNI