Railways can save Rs.3,000 crore by better power purchase: Prabhu

Railways Minister Suresh Prabhu, who is on the move to implement the recommendations of Bibek Debroy committee to improve quality of services and efficiency, said on Tuesday that it can save over Rs.3,000 crore every year with better power purchase arrangements.

The minister, while attending an event organised by industry chamber CII here, said despite railways being one of the largest buyers of electricity, the purchases were made at a "fairly high rate which had lot of scope for rationalisation".

He said the energy basket of the railways is being widened to include more renewable sources, with the platform roof and railway coaches being equipped with solar panels to ensure self-sufficiency in a part of its operations.

Prabhu also said both railways and the roads department are suffering due to lack of investments over a long period of time and his government is "working towards correcting this situation, by innovative measures".

The central government is planning a slew of new investment inflows by utilising railway assets at the stations by allowing a higher Floor Space Index in partnership with the local bodies, he said.

Besides, the minister said railways needs to target to improve the freight share to the railway's revenue.