Indian Railways Cuts Fuel Costs As Electrification Reaches 99.6%
Indian Railways has significantly reduced its diesel consumption over the past decade, a shift that could save thousands of crores of rupees annually in fuel costs while lowering greenhouse gas emissions, according to estimates by VIndustry.Lower expenses on operations of the railway system would help cut down tariffs, which will be a positive move for industries like steel, cement, coal, automobiles, agriculture, and containers."Railway electrification nearing completion is not just an environmental achievement but also a structural change in the economy of India. Fuel savings and efficient operations increase India's logistics competitiveness and keep logistics inflation low," Dr Aditi Nayar, Chief Economist, ICRA, stated.
Infrastructure Push Supports Long-Term Economic Growth
Electrification is consistent with investment in Dedicated Freight Corridors, station upgrading and modern signalling systems designed to boost capacity in terms of freight services and passengers.
Official figures indicate that India has already electrified over 47,000 route kilometres during the last ten years, which makes the country’s programme the fastest in the world.
In addition, the timing could not be more relevant in view of the recent dynamics of international fuel prices. Even though oil prices have declined since their recent peaks, a reduced dependence on diesel can provide protection against further price fluctuations and enhance India’s energy security through decreased import of fuel.
Moreover, continued investment in the transport infrastructure by the authorities will positively impact India’s manufacturing industry, export capacity and economic integration. Electrification almost to its completion could position Indian Railways to become a more important player in meeting the goals of the National Logistics Policy aimed at reducing logistics costs and making doing business easier.
Pages:
[1]