Western Railways to chug on wind power
WR waiting for Board’s approval of its Rs 70-cr plan to start wind farms to harness energy for its trains
By Jignesh Barot and Yogesh Avasthi
Posted On Friday, December 12, 2008 (Ahmedabad Mirror)
The Railways’ turn from a loss-making organisation to a profit-churning one is the subject of management text-books. But it does not plan to
rest on its laurels yet. Instead, it is mulling different ways to reduce maintenance cost, earn some carbon credits along with more moolah in the process! For this, the Western Railway is planning to start wind farms to harness energy to power trains.
By Jignesh Barot and Yogesh Avasthi
Posted On Friday, December 12, 2008 (Ahmedabad Mirror)
The Railways’ turn from a loss-making organisation to a profit-churning one is the subject of management text-books. But it does not plan to
rest on its laurels yet. Instead, it is mulling different ways to reduce maintenance cost, earn some carbon credits along with more moolah in the process! For this, the Western Railway is planning to start wind farms to harness energy to power trains.WR is looking for suitable locations in Rajkot, Bhavnagar and Ahmedabad divisions. “We need a site where the average wind frequency is around 25-30 km per hour. All three divisions share the Saurashtra coastal belt that enjoys heavy wind speed,” said Shyam Sunder Gupta, chief PRO of Western Railway.“The proposal has been tabled before the railway board. The Rs 70-crore pilot project will include seven windmills each with a capacity of 1.5 MW. We expect to receive the board’s approval soon,” said Gupta.
Green money Right now, WR is buying electricity from the Gujarat State Electricity Board for Rs 5.70 per unit. If the plan is approved and put in motion, wind farms can generate energy which will cost only Rs 3. “We will save Rs 2-3 per unit, which adds up to a big total. Also, once installed, the unit cost will remain constant as wind is the only raw material required,” said Gupta.This is the most obvious way WR will save money.
Green money Right now, WR is buying electricity from the Gujarat State Electricity Board for Rs 5.70 per unit. If the plan is approved and put in motion, wind farms can generate energy which will cost only Rs 3. “We will save Rs 2-3 per unit, which adds up to a big total. Also, once installed, the unit cost will remain constant as wind is the only raw material required,” said Gupta.This is the most obvious way WR will save money.
The eco-friendly idea will also get interest subsidy, capital subsidy and other tax benefits. The biggest benefit will be additional revenue earned through carbon credits. Carbon credits are part of a tradable permit scheme. They provide a way to reduce greenhouse gas emissions by giving them a monetary value. A credit gives the owner the right to emit one tonne of carbon dioxide. Carbon credits held in offshore funds, primarily hedge funds, are treated as exempt from tax on profits in the same way as equities or bonds.
