Indian Railway- NTPC Split Ways

DELHI,INDIA (GaeaTimes.com)-NTPC Ltd (National Thermal Power Corporation) has gone ahead to have declared that it shall split ways with the Indian Railways. Reportedly, the very decision of NTPC to separate itself from Indian Railways gains ground with their plan of building a captive power plant in West Bengal. As a matter of fact, there has been hours of discussion between the Indian Railway officials and the NTPC people on this issue. However, neither of the parties have been able to come to terms on ownership grounds.

Both Indian Railways as well as NTPC had accepted all terms on the 1,320MW Adra project which was declared alongside the Railway Budget for the year 2009-2010. However, NTPC recently issued a letter to Indian Railways mentioning that they aren’t happy with the current stake offerings of 26% and would choose to split ways if the stake percent on their end is not increased. NTPC offcials told the media that they have refused Indian Railways to work with them on the proposed project because they feel that they were being treated as a minority partner which is not acceptable under any circumstances.

The Planning Commission has advised Indian Railways to go for some other suitable options like purchasing power from other independent sources like the private power plants which they think will be a fine replacement to the state electricity broad. As a matter of fact the Indian Railways employs over 12 billion units for electricity in span of one single year. The consumption rates are also recorded to be as of an average of 5%. Apart from that the Indian Railways also pays Rs 4.29 on an average rate per unit in order to facilitate the running of the locomotives.