High power rate to make railway ‘disconnect’ TANGEDCO ties

COIMBATORE: The exorbitant tariff rates quoted by the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has forced the Southern Railway to look for a better deal with a public sector company to cater to its electricity needs.

Tangedco’s Rs 8.12 per unit tariff for power used by the Railway in the State is said to be quite high, not just against the rate offered by public sector companies, but by other governments too.

“The average cost of electricity in Kerala is Rs 5.70 and Rs 4.80 in Andhra Pradesh. In case of excess consumption, the penalty is 300 per cent in Tamil Nadu, wheras it is 150 and 200 per cent in Kerala and Andhra Pradesh, respectively,” said S Rama Subbu, Chief Electrical Distribution Engineer of Southern Railway, Chennai.

Much to the Railway’s relief, Ratnagiri Gas and Power Private Limited (RGPPL), jointly promoted by the National Thermal Power Corporation and GAIL (India) Limited, has come forward to offer power at Rs 5.90 per unit.

“Tangedco has made a proposal to increase power factor tariff from 0.9 to 0.95 level. Hence, it will increase our spending on electricity by another 15 per cent. So we have decided to stop procuring from Tangedco and choose RGPPL,” Rama added.

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