Before 2018, the Indian Railways had proceeded cautiously before electrifying a route.
It used as basis, the gross million tonnes moved on a route. On routes with insufficient GMT, operational factors were taken into consideration before electrification.
All this was reversed in September 2018, when the Cabinet Committee on Economic Affairs (CCEA) of the Union government announced 100% electrification of the broad gauge routes as its goal.
The Railways highlighted the following advantages of 100% electrification:
- Reduced operating cost,
- Haulage of heavier freight trains and longer passenger trains,
- Environment friendly mode of transport, and
- Reduced dependence on imported crude oil.
These are being parroted both by political outfits and press. But let us analyse each of these items and assess the utility of the 100% electrification plan.
Where does this come from?
In economics, as fixed investments increase, assets have to be used intensely so that they become productive. Using the same principle, various committees appointed by Railway Board have analysed traffic break even points at which electrification is viable. Such break even points have ranged from around 6 gross million tonnes in 1963 to around 49 gross million tonnes in 1996.
Published data for 2012-13 on gross million tonnes carried on 55,590 route-kilometres is available. An analysis of gross million tonnes carried indicates that 18% of route-kilometres should not have been electrified when 6 gross million tonnes was carried. The percentage rises to 85% of route-kilometres when it is 49 gross million tonnes.
If one chooses an average figure of 27 gross million tonnes, 62% of route-kilometres should not be electrified.
The Railways have many divisions with terminals beyond which trains do not run. Izatnagar division, bordering the sub-Himalayan region, in the North Eastern Railway, is one such. Data on gross million tonnes for the Izatnagar division indicates that for the year 2019-20, out of over 1,000 route-kilometres, around 40% carried less than 6 gross million tonnes. This indicates the futility of electrification of these routes.
In addition to the economics, electrified sections are most vulnerable to various unusual occurrences. In such cases diesel locos are used for emergency operations. With 100% electrification, recovery from emergency situations will be delayed and also become complicated.
With this background, let us analyse the tenability of advantages proffered for electrification.
Also read: India’s Rail Routes are Being Electrified, But Electric Locos Still Can’t Run On All of Them
‘Reduced operating cost’
Reduced operating would be effective when the traffic crosses the traffic density given above. Otherwise electric operations would be costlier than diesel operations. This is because of the higher fixed cost involved in electrification. Thus, by quoting operating costs and ignoring fixed and average costs, the Railways have misguided the public.
‘Haulage of heavier freight trains and longer passenger trains’
This is another of the myths propagated without much logic. Routes on the Railways are classified into five categories – A to E.
A and B routes are designed for 160 and 130 kilometre per hour (kmph) speeds respectively. More than 90% of A and B routes, except few exceptions like the Jalpaiguri line, were electrified before 2018. While C route is for suburban sections, routes D and D Special have maximum speeds of 110 kmph. E routes have maximum speed of 100 kmph. As most these routes had not been electrified before 2018, diesel locos would essentially be running on these routes.
The highest power of electric passenger and goods locos operational in the Railways (not including locos on dedicated freight corridor) is 6350 and 6120 Horse Power (HP) respectively while those of diesel passenger and goods locos is 4,500 HP. Other than A and B routes, diesel locos would not be any inferior to electrical locos in hauling similar length passenger trains at maximum speeds on other routes.
As far as goods trains are considered, while power is important another important parameter is the tractive effort – which indicates a locomotive’s ability to start a trailing load. Incidentally, both electric and diesel locos have almost same tractive effort – indicating that their ability to start heavy loads are similar. Thus speeds for diesel trains could be little lower due to lesser power but difference would not be substantial.
Thus, haulage of heavier loads and longer passenger trains is wholly untenable and difference, if any, is insignificant.
‘Environment friendly mode of transport’
Another myth being publicised is that diesel loco emits smoke while electric loco does not.
Unfortunately, in 2021-22, 75% of electricity in India is generated from fossil fuels and the smoke emitted by these plants is no less than what a diesel loco emits. In spite of hype about renewable energy production, total electricity produced from wind and solar sources is 11.5% of the total electricity produced in the country in 2021-22.
The Railway has also created a lot of hype about it own renewable energy production. It needs to install 30,000 mega watts (MW) to be carbon neutral by 2030 and as of February 23 its total installed capacity is 147 MW of solar and 103 MW of wind.
They are estimated to produce 0.66 billion units – which is 3% of the Railway’s electricity consumption for traction purposes and 0.04% of total India’s electricity production.
Also read: India’s First High-Power Electric Loco, Flagged off by Modi in April, Fails Test Run
‘Reduced dependence on imported crude oil and saving foreign currency’
In the year 2021-22, the Indian Railways consumed around 1.25 million tonnes of diesel, while India consumed 76.6 million tonnes of diesel and 201.7 million tonnes of all petroleum products put together. Thus the Railways consumed 1.62 % of diesel consumed in the country and 0.62% petroleum products consumed in the country. The import bill for March 22 for crude oil was US $ 13.7 billion while the reserves as on March 31, 2022, were US $ 598 billion – which is 2.3% of the total reserves. With a 0.62% share in consumption of total petroleum products, impact of IR’s diesel consumption on foreign exchange works out to 0.01%.
Though the stated reasons for 100% electrification are laudable, the above establishes that they are misplaced.
What about diesel assets?
The decision took no consideration of the diesel assets available with the Railways and its contractual commitments. As on March 31, 2018, the Railways had 5,866 diesel locos and conservative estimate of these locos would be around Rs 52,800 crores. More importantly, the Railways have a contractual commitment to GE Transportation to to buy 1,000 locos worth around Rs 14,000 crores over a 10-year period.
Did the CCEA not note assets worth Rs 66,800 crores or the strengths developed in diesel loco domain before taking the decision?
Politics and finances behind the decision
The National Democratic Alliance government came to power with a promise that it would improve the Railways.
From 2016-17, Railways finances were in the doldrums. In the year 2016-17, railway freight reduced by around 35 million tonnes, a probable outcome of demonetisation, and the operating ratio – amount spent to earn Rs 100 – deteriorated to 96.5 from the previous year’s value of 90.5. The figure itself is an exercise in window dressing by reducing depreciation amount, and if the 2014-15 amount was provided for depreciation of assets then the ratio would have further deteriorated to 99. In 2017-18, the operating ratio further deteriorated to 98.4 with reduced provision for depreciation. If the 2014-15 amount was provided for depreciation, then the ratio would work out to 103 – indicating that IR was making operational losses after a very long time.
It is in this context that one has to look at the decision of 100% Railway electrification. It would bring in a lot of visibility. In addition, one can assign popular, but glib reasons such as environmental friendliness, saving of foreign exchange and operational convenience. But they appear to be attempts to detract from the Railways’ performance.
Harmful consequences
As seen above, the 100% electrification move would increase average cost of transportation on many routes. To offset this increase, the Railways have to increase passenger and freight prices. However, as transport market is highly price sensitive they would shift to other modes – predominantly to road. This in turn would increase consumption of fossil fuels and increase pollution.
Though 100% electrification is harmful for the Railways, it cannot be reversed at this juncture. However, it is high time that the government reviews critically some of its policies.
M. Ravibabu, retired from the Indian Railways and is a founder member of Anekdhara, a public policy portal.