Railways plans tie-up with IOC to cut on expenses

Deal is likely to save Rs 2,000-2,500 crore a year on taxes for the ailing transporter

The railways will soon be reaching an understanding with Indian Oil Corporation (IOC) for refining crude oil imported by the transport behemoth itself — a move that is likely to save Rs 2,000-2,500 crore a year on taxes for the ailing transporter.

The railways consumes about 2.8 billion litres of diesel in a year, costing Rs 18,000 crore, and 17.5 billion units of electricity, costing Rs 12,300 crore.

“As an initial step, we have invited bids from consultants to work on the plan. We have received three bids. We are planning to import 500,000 tonnes of crude oil directly and will give