Mission 41K

Ministry of Railway

 

WHAT

Indian Railways has started Procurement of Power in Punjab for Northern Railway as Deemed Licensee under Open Access to reduce the cost of operations under “Mission 41K”.

• The Indian Railways is now taking about 70 percent power under the open access as the deemed licensee in 11 states.
• One of the major initiatives to reduce the cost of operations has been direct procurement of powers as deemed licensee instead of the consumer.

 

MISSION 41K

• Mission 41K targets for saving of Rs.41000 crore through integrated Rail Energy Management System by 2025.
• Railway Energy Management Company Limited (REMCL) has been endeavouring to achieve this target by gradual migration from consumers to the deemed licensee. REMCL is a Joint Venture of the Ministry of Railways and Rail India Technical and Economic Service (RITES).

 

SIGNIFICANCE

• Deemed licensee status enables Indian Railways to buy electricity directly from any generating company by paying wheeling charges to central and state transmission system under open access as per the Electricity Act, 2003.
• With the addition of Punjab in the portfolio of open access, India Railways is now taking about 1400 MW (70 percent) of power under open access as demand licensee in 11 states.
• These efforts are resulting in an annual saving of over Rs.3500 crore per annum and a total saving of over Rs.12,000 crore since the commencement of power under open access with effect from November 2015 onwards as business as usual mode.

 

Source: PIB

 

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