Power Grid Corp (PGCIL) will soon start project to electrify 1,000 km of rail tracks on a pilot basis.
In the first phase, the electrification project will cover 16,000 km of busy tracks out of 35,000 km of unelectrified lines in the country.
The electrification of tracks will help railways save around Rs 8,000 crore annually.
Indian railways consumes around 2.8 billion litres of diesel annually, costing around Rs 18,000 crore — nearly 18 per cent of its working expenses.
Government had announced the government’s plans to electrify 35,000 km tracks by state-owned power companies over a period of three years.
The electrification of entire rail tracks in the country will lead to power consumption going up by 7 billion units.
Railways, which procures power from distribution companies, spends about Rs 12,300 crore a year to purchase 17.5 billion units of electricity.