Maharashtra hints at power tariff hike for railway

In a move that could put paid to Central Railway’s (CR) efforts to save electricity, the Maharashtra State Electricity Distribution Co. Ltd (MAHADISCOM) has conveyed to the railways that it wants to hike the power charges for the transporter from Rs7.98 to Rs9.60 per unit.

The move would bring about a burden of Rs300 crore in CR’s power bills leaving the transporter, already among the laggards in a bleeding railway system, without enough money for various electrical works in the suburban system. The issue has now reached the highest levels of the state government and the railways with the railway ministry’s member (Electrical) Kul Bhushan and state chief secretary JK Banthia meeting to thrash out differences. The meeting was also attended by senior CR officials, including chief electrical engineer PK Srivasatav and Maharshtra State Electricity Board (MSEB) officials.

According to sources, the state was told that the hike in the rates was not acceptable to the railways as it would increase CR’s energy bills from Rs1,200 crore to over Rs1,500 crore. The biggest hit would be taken by the suburban system which accounts for half - around Rs600 crore — of the total energy bill at CR. The railways also rejected the state’s contention that subsidised electricity to various sections of the society - mainly the agriculture sector - had left the MSEB and its trifurcated entities with massive losses.

“We too are a heavily subsidised system. Asking to us to pay will inconvenience commuters since there is a trickle-down effect to such things, and in the long run, projects as well fares get affected,” said a senior CR official.

According to officials, one of the demands made by the railways is that the state government pay ‘wheeling’ charges — power lingo for money paid for transportation of electricity - so that railways can buy electricity from some other grid at lower rates.

As reported earlier by dna, the MSEB’s generation arm, Mahagenco, and CR are already fighting over non-payment of Rs111 crore incurred in transportation of coal.

Locals to get hit
The Maharashtra State Electricity Distribution Co. Ltd wants to hike the power charges for CR from Rs7.98 to Rs9.60 per unit. But the railways has told the state that this is not acceptable as it would increase CR’s energy bill by nearly Rs300 crore. The biggest hit would be taken by the suburban system which pays for half the bill.