Railway minister Suresh Prabhu on Tuesday said the transporter will change its energy consumption mix which will result in savings of R41,000 crore in the next decade as energy costs. Railways had estimated fuel cost to be around R23,417 crore for FY17 in the Budget, and it is one of the largest cost head of the carrier after salary and pension. However, the total savings on fuel between Budget estimate and revised estimates for FY16 was R3,475 crore.
Under the Mission 41K initiative announced on Tuesday, railways will adopt newer technologies and move towards electricity which is cleaner than diesel. Railways has set a target of 1,000 MW of solar power and 200 MW of wind energy.
It said all electrification works done in the last decade would be doubled and this would change the energy mix. Though at present 70% traffic runs on electric traction, in next six-seven years railways targets to run 90% of the traffic on electricity. Also, through open access, the cost of electricity procurement comes down drastically which contributes 25% of the working cost.