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  • Monday, 01 June 2026

Railways staring at higher electricity costs after Supreme Court rules it qualifies as ‘consumer’

Indian Railways faces increased electricity costs following a Supreme Court ruling. The court declared the national transporter a "consumer" under the Electricity Act, making it liable for cross-subsidy and additional surcharges on open access power. This decision impacts the railways' operating ratio and power procurement expenses, overturning previous exemptions.

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