Indian Railways, seems to be in discussion with Nuclear Power Corporation of India Limited (NPCIL) to set up nuclear power plants on captive basis to meet its own electricity needs.
As the national transporter is reeling under severe financial stress, it seems that the move is part of the strategy to revisit its energy consumption considering recent hikes in diesel price for bulk users.
Indian Railways spent Rs 8,000 crore on electricity in 2012-13, while its diesel bill was around Rs 15,000 crore.
According to the officials of Indian Railways, the transporter will soon sign an Memorandum of Understanding (MoU) with the NPCIL for the development of the nuclear power plants. The company is also exploring some options in Uttar Pradesh, Haryana, Karnataka and Tamil Nadu.
As estimated by the transporter, the electricity costs from the proposed captive power plants will be close to Rs. 4 per unit or even lesser whilst it currently is paying around Rs. 5.4 per unit.
The first phase of the captive power plant will be operationalized at Nabi Nagar in Bihar.
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