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Licensee Status for Railways: Is this Achievable?

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Central Railway authorities believe that if they acquire a deemed licensee status there will be huge savings in the purchase of electricity, something that will only go up in the future as more railway routes get electrified nationwide.
Source: DNA

SNP Insight:

Central railway as a licensee would certainly help to reduce the cost incur on power procurement and increase the saving upto 365 crore per year only in the Mumbai region. However, Railways is a public company whose acquiring licensee is quite objectionable. It may go for captive power plant/open access and cross subsidy waiver would depend on the mode of sourcing power.


Source: SNP Infra Research