The Operational Line Haul Costs for Diesel and Electric Traction are expressed in terms of the Line Haul Costs per 1000 GTKMs of Traffic carried. It has the following components.
-Costs of Fuel, Stores, etc.
-Repair, Maintenance and Operating Expenses.
-Depreciation
-Interest
Anomalies in Line Haul Costs
OHE Financing through Budgetary support
(Applicable 7% Dividend)
Capital-at-charge (Rs.4359 Crore *) of Electrification retained with CORE.
Capital-at-charge of Zonal Railway kept low
(Example-WR/43 Crore, SR/69.9 Crore since 1987, CR/120).
Interest of full Capital-at-charge Rs.15 per 1000 GTKM
ROR worked out for 36 years, slightly less than the OHE Codal life of 40 years to avoid Replacement costs getting reflected.
IRFC Lease Hire Charge apportion to Diesel locos only (Example-ER)
IRFC Lease Hire charge distributed in proportion of loco holding to the disadvantage of diesel traction where shunting locos also get included.
* Source : 2001-02 (BE) Figure as per Budget Documents Explanatory Memorandum 2001-02
Line Haul Costs
Proof of the Pudding is in the Eating !!
Diesel Line Haul Cost on
Non-electrified Railways (NE & NF) are significantly lower than that of
Electrified Railways
NE 46.48 65% Lower than IR Ave.
NF 62.10 24% Lower than IR Ave.
Line Haul Costs
In any case,
the Average Line Haul Cost
derived from the High Density Electrified Routes cannot obviously be Extrapolated to justify the Electrification of Low Density Routes.
Procedure for sanction of Electrification Projects
Each Electrification Project will be justified on ROR which should exceed 14% with the DCF Method.
In certain specific cases, Electrification will be justified on considerations of Operational flexibility
Electrification of a single line section (Main Line) will normally not be considered.