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Modi’s Mumbai-Ahmedabad bullet train line is wasteful

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One chart that shows just how absurdly wasteful Modi’s Mumbai-Ahmedabad bullet train line is

japanese_bullet_train.jpg



In every which way, Narendra Modi’s 2014 campaign was spectacular. From communication to ground management, the Bharatiya Janata Party electoral machine, it is widely acknowledged, got it right. However, a year and a half after Modi took office, one aspect of his campaign seems to have been a bit too spectacular altogether. As part of its manifesto, the BJP promised what it called a diamond quadrilateral: a network of bullet trains crisscrossing the country. The first step in that plan has gone through. India just signed a deal with Japan to build a Mumbai-Ahmedabad bullet train link.

Politicians over promising things while campaigning is a fine Indian tradition but the enormous cost of just this one line should serve as a shock: the estimated project expenditure has come to Rs 98,000 crore.

To put that in perspective, here’s a chart of how this figure compares to other expenditure by the government of India on absolutely vital sectors such as rail safety, health, roads and schools.

1449924557-182_Bullet-train-graph-3.jpg



Narendra Modi has made cleanliness a key part of his government’s message. And indeed, India desperately needs it being one of the countries with the worst rates of open defecation on the planet. 44% of Indians do not use what is probably the most basic marker of modernity: a toilet. Even Nepal, Pakistan and Bangladesh beat big brother India with corresponding figures of 32%, 13% and 1%, respectively.

India should be on a toilet overdrive, yet the government of India is going to spend 41X of its Swachh Bharat Mission outlay for 2014-'15 on building a somewhat fast train line between two cities already superbly connected by road, rail and air.

Bullet train > health, safety or schools

There’s more: the Mumbai-Ahmedabad bullet train cost is almost 4X the amount the Centre is going to invest in rail safety in 2015-16. Just a week ago, India saw two train accidents claim 14 lives and the Indian rail system is one of the most unsafe in the world. Yet, precious money is being diverted from safety to needless luxuries like a bullet train. In fact, shockingly, the bullet train budget is 2.4X the entire amount the government of India is going to spend on the Indian Railways in 2015-'16.

The Mumbai-Ahmedabad bullet train budget is also 2.3X the entire spend of the Centre on schools. The corresponding figure for health and highways is 3.3 and 2.3, respectively.

There is an interesting contrast here with healthcare. Like bullet trains, the BJP manifesto had also promised a plan for universal healthcare. This is much needed. India’s healthcare system is shambolic and according to a World Health Organisation study, ranks 112th in the world (for context, eastern neighbour Bangladesh ranks in at 88, a good 24 places ahead). Yet, in March 2015, the Modi government decided to scrap plans for a universal healthcare scheme due to a “constraint on India's financial resources”. This plan, which could have changed India dramatically, had a budget which was just 25% more than the Mumbai-Ahmedabad bullet train link.

The razzmatazz of a bullet train might help him politically but can Prime Minister Narendra Modi justify reducing the Mumbai-Ahmedabad commute by two hours as a more important public goal than rail safety, ending open defecation, schooling, building highways across the country or public health?
 
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Loan repayment will start after 50 years.India will be a giant economy by then.When somebody is offering you almost free money,it is foolish to refuse it.Also,HSR will bring boost to real-estate sector.
 
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A Rs 98,000-crore project to lay India's first bullet train network between commercial nerve centre of Mumbai and Ahmedabad was on Saturday finalised at the annual summit talks between Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe
  • 404072-bullet-train.jpg
    File Photo dna Research & Archives
A Rs 98,000-crore project to lay India's firstbullet train network between commercial nerve centre of Mumbai and Ahmedabad was on Saturday finalised at the annual summit talks between Prime MinisterNarendra Modi and his Japanese counterpart Shinzo Abe.

"No less historic is our decision to introduce High Speed Rail on the Mumbai-Ahmedabad sector through Japan's Shinkansen, known for its speed, reliability and safety," Modi said at a joint media event with Abe.

He also greatly appreciated Abe's extraordinary package of approximately $12 billion (approx Rs 98,000 crore) and technical assistance, on very easy terms, for this project.


Also read: Modi-Abe: India to get Japan's bullet train, deepen defence and nuclear ties

The bullet train network will link India's financial hub Mumbai with Ahmedabad, the capital of Modi's home state Gujarat. Bullet train between the two cities will cut travel time on the 505-kilometre route from eight hours to around three.

Also read: Mera train hai Japani: Japan to offer 81% loan for Mumbai-Ahmedabad bullet train

"This enterprise will launch a revolution in Indian railways and speed up India's journey into the future. It will become an engine of economic transformation in India," Modi said.

Foreign Secretary S Jaishankar said Japan will provide 80% of the funds for the project at 0.1% interest rate for a period of 50 years.


Mumbai-Ahmedabad bullet train estimated project cost Rs 98,000 crore | Latest News & Updates at Daily News & Analysis
 
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don't miss modi's pic with the terracotta warriors needlessly placed in the original article on troll.in :disagree:
 
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Total budget of bullet train which is spread over 7 years is being compared with yearly allocation for other schemes?
 
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Ha
Loan repayment will start after 50 years.India will be a giant economy by then.When somebody is offering you almost free money,it is foolish to refuse it.Also,HSR will bring boost to real-estate sector.
Haha giant it can be giant loaner in 50 years write my words
 
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One chart that shows just how absurdly wasteful Modi’s Mumbai-Ahmedabad bullet train line is

japanese_bullet_train.jpg



In every which way, Narendra Modi’s 2014 campaign was spectacular. From communication to ground management, the Bharatiya Janata Party electoral machine, it is widely acknowledged, got it right. However, a year and a half after Modi took office, one aspect of his campaign seems to have been a bit too spectacular altogether. As part of its manifesto, the BJP promised what it called a diamond quadrilateral: a network of bullet trains crisscrossing the country. The first step in that plan has gone through. India just signed a deal with Japan to build a Mumbai-Ahmedabad bullet train link.

Politicians over promising things while campaigning is a fine Indian tradition but the enormous cost of just this one line should serve as a shock: the estimated project expenditure has come to Rs 98,000 crore.

To put that in perspective, here’s a chart of how this figure compares to other expenditure by the government of India on absolutely vital sectors such as rail safety, health, roads and schools.

1449924557-182_Bullet-train-graph-3.jpg



Narendra Modi has made cleanliness a key part of his government’s message. And indeed, India desperately needs it being one of the countries with the worst rates of open defecation on the planet. 44% of Indians do not use what is probably the most basic marker of modernity: a toilet. Even Nepal, Pakistan and Bangladesh beat big brother India with corresponding figures of 32%, 13% and 1%, respectively.

India should be on a toilet overdrive, yet the government of India is going to spend 41X of its Swachh Bharat Mission outlay for 2014-'15 on building a somewhat fast train line between two cities already superbly connected by road, rail and air.

Bullet train > health, safety or schools

There’s more: the Mumbai-Ahmedabad bullet train cost is almost 4X the amount the Centre is going to invest in rail safety in 2015-16. Just a week ago, India saw two train accidents claim 14 lives and the Indian rail system is one of the most unsafe in the world. Yet, precious money is being diverted from safety to needless luxuries like a bullet train. In fact, shockingly, the bullet train budget is 2.4X the entire amount the government of India is going to spend on the Indian Railways in 2015-'16.

The Mumbai-Ahmedabad bullet train budget is also 2.3X the entire spend of the Centre on schools. The corresponding figure for health and highways is 3.3 and 2.3, respectively.

There is an interesting contrast here with healthcare. Like bullet trains, the BJP manifesto had also promised a plan for universal healthcare. This is much needed. India’s healthcare system is shambolic and according to a World Health Organisation study, ranks 112th in the world (for context, eastern neighbour Bangladesh ranks in at 88, a good 24 places ahead). Yet, in March 2015, the Modi government decided to scrap plans for a universal healthcare scheme due to a “constraint on India's financial resources”. This plan, which could have changed India dramatically, had a budget which was just 25% more than the Mumbai-Ahmedabad bullet train link.

The razzmatazz of a bullet train might help him politically but can Prime Minister Narendra Modi justify reducing the Mumbai-Ahmedabad commute by two hours as a more important public goal than rail safety, ending open defecation, schooling, building highways across the country or public health?
this shoib daniyal looks like a pseodo sikular JNU communist juorno who cant even make owt that 80% of the ammount will be paid by the japnese including all the tech support and that too on a 50 year lone basis wich agains is just .1% interest ....... in short criticism for the sake of crticism :haha:
 
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this shoib daniyal looks like a pseodo sikular JNU communist juorno who cant even make owt that 80% of the ammount will be paid by the japnese including all the tech support and that too on a 50 year lone basis wich agains is just .1% interest ....... in short criticism for the sake of crticism :haha:
Guruji Pranam _/\_, hum apne profile mein comment nahi kar paye pata ni option kaha pe hai, toh yehi kar diya.
 
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In Defence Of The Mumbai-Ahmedabad Bullet Train
Posted: 14/12/2015 14:44 IST Updated: 3 hours ago
n-BULLET-TRAIN-JAPAN-large570.jpg



Over the last few days, a lot of analysis has appeared in the media, which has tried to project that the decision to launch a bullet train between Mumbai and Ahmedabad is a stupid one.

And this is how some of this analysis goes. India will spend Rs 98,000 crore on building this bullet train between Mumbai and Ahmedabad. This is something it cannot afford. Now compare this to the amount of money that we spend on education, health, roads, etc., during the course of the year.

For the current financial year, 2015-2016, the allocation towards school education and literacy is at Rs 39,038.50 crore. The allocation towards higher education is Rs 15,855.26 crore. When it comes to health, the government has allocated Rs 24,549 crore to be spent during the course of the year. The allocation to the National Highways Authority of India, which builds roads connecting the country, is Rs 22,920.09 crore. The total allocation to the ministry of road transport and highways is at Rs 42,912.65 crore.

Further, during the course of the year, the Railways plans to spend just Rs 6,581 crore on 970 overbridges and under-bridges and other safety related measures, in order to eliminate 3,438 level crossings. And if all this wasn’t enough, the total allocation to the ministry of environment, forests & climate change is just Rs 1,446.60 crore.

The analysis that has appeared in the media is essentially simplistic in nature


Given the amounts that we are spending on such very important things, how can we be spending Rs 98,000 crore on a bullet train. Can we really afford this?

As a recent analysis on Scroll.in points out: “The Mumbai-Ahmedabad bullet train budget is also 2.3X the entire spend of the Centre on schools. The corresponding figure for health and highways is 3.3 and 2.3, respectively.” [My numbers lead to slightly different ratios, but the broader point the Scroll article is trying to make doesn’t really change, so we will leave it at that].
If we look at the entire issue on the basis of the information that I have provided in the article up until now, spending money on a bullet train, when there isn’t enough money going around for health, education, roads and railway safety, seems out rightly stupid.

Nevertheless, all such analysis that has appeared in the media is essentially simplistic in nature. Allow me to elaborate. As the press release on the bullet train announcement points out: “India and Japan have signed an MoU [memorandum of understanding] on 12th December, 2015 on cooperation and assistance in the Mumbai–Ahmedabad High Speed Rail Project (referred by many as Bullet Train project). Japan has offered an assistance of over Rs 79,000 crore for the project. The loan is for a period of 50 years with a moratorium of 15 years, at an interest rate of 0.1 per cent. The project is a 508-kilometre railway line costing a total of Rs 97,636 crore, to be implemented in a period of seven years.”

original.jpg


The bullet train between Mumbai and Ahmedabad will cost Rs 97,636 crore and will be built over seven years. Hence, the entire Rs 98,000 crore (approximately) will not be spent in one year. Given this, the comparisons with the health budget, the education budget, the road and highways budget, that have appeared in the media, are incorrect. A spending to be carried out over a period of seven years is being compared with spending carried out every year. A comparison of both over a seven-year period would have been the right way to go about it. But then things don’t look as bad as they do now.

It has been implied that the government is spending this money in one year, which it clearly isn’t. Second, the analysts forget to mention, perhaps unknowingly, that almost 80% of the project is being financed on a very soft loan from Japan.

Japan has offered a loan more than Rs 79,000 crore to be repaid over 50 years at an interest rate of 0.1% per year [Yes you read that right!]. Further, the loan comes with a 15-year moratorium. What this means is that India does not need to start repaying the loan immediately. It will have to do so fifteen years down the line.In effect, the Japanese government is giving a loan to the Indian government at almost 0% interest


Now what would repaying the loan entail? A loan at an interest 0.1% to be repaid over 50 years essentially means almost no interest is being charged. Once India starts repaying the loan, it would have to pay an EMI of Rs 135 crore per month. In fact, the interest is so low that the total repayment over 50 years will amount to just Rs 81,000 crore. This means an interest component of Rs2000 crore over fifty years. The government of India can clearly afford this.

Also, this repayment doesn’t start for 15 years and has to be repaid over a period of 50 years. Hence, once we take inflation into account, the Rs 135 crore that will have to repaid 15 years down the line and over a period of 50 years, will be worth much less than it currently is. By then, the project will also start generating some revenue.

The question is why is Japan doing this? It “has been agreed that Shinkansen Technology will be adopted for the project.” In effect, the Japanese government is giving a loan to the Indian government at almost 0% interest, in order to be able to buy technology from Japanese companies.

Also, there is another reason for the Japanese largesse. As Bharat Karnad writes in Why India is Not a Great Power (Yet): “With an eye firmly on China as the main adversary and security challenge, India can synergize its engagement and role with the military, political, and economic capabilities of countries feeling threatened by Beijing to keep China at bay.”

Once these factors are taken into account, the bullet train project between Mumbai and Ahmedabad will not be a drain on the government finances. Having said that, the government will have to ensure that it does not become a “white elephant” as and when it starts. In order to ensure that, the ticket prices of the bullet train will have to be lower than that charged by airlines.

In Defence Of The Mumbai-Ahmedabad Bullet Train
 
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Left wing scums said the same about Delhi Metro

Which would have cost 50000 crores by the time it's finished
Now 2.5 million people use it every day and its being replicated across 8 major cities
 
.
One chart that shows just how absurdly wasteful Modi’s Mumbai-Ahmedabad bullet train line is

japanese_bullet_train.jpg



In every which way, Narendra Modi’s 2014 campaign was spectacular. From communication to ground management, the Bharatiya Janata Party electoral machine, it is widely acknowledged, got it right. However, a year and a half after Modi took office, one aspect of his campaign seems to have been a bit too spectacular altogether. As part of its manifesto, the BJP promised what it called a diamond quadrilateral: a network of bullet trains crisscrossing the country. The first step in that plan has gone through. India just signed a deal with Japan to build a Mumbai-Ahmedabad bullet train link.

Politicians over promising things while campaigning is a fine Indian tradition but the enormous cost of just this one line should serve as a shock: the estimated project expenditure has come to Rs 98,000 crore.

To put that in perspective, here’s a chart of how this figure compares to other expenditure by the government of India on absolutely vital sectors such as rail safety, health, roads and schools.

1449924557-182_Bullet-train-graph-3.jpg



Narendra Modi has made cleanliness a key part of his government’s message. And indeed, India desperately needs it being one of the countries with the worst rates of open defecation on the planet. 44% of Indians do not use what is probably the most basic marker of modernity: a toilet. Even Nepal, Pakistan and Bangladesh beat big brother India with corresponding figures of 32%, 13% and 1%, respectively.

India should be on a toilet overdrive, yet the government of India is going to spend 41X of its Swachh Bharat Mission outlay for 2014-'15 on building a somewhat fast train line between two cities already superbly connected by road, rail and air.

Bullet train > health, safety or schools

There’s more: the Mumbai-Ahmedabad bullet train cost is almost 4X the amount the Centre is going to invest in rail safety in 2015-16. Just a week ago, India saw two train accidents claim 14 lives and the Indian rail system is one of the most unsafe in the world. Yet, precious money is being diverted from safety to needless luxuries like a bullet train. In fact, shockingly, the bullet train budget is 2.4X the entire amount the government of India is going to spend on the Indian Railways in 2015-'16.

The Mumbai-Ahmedabad bullet train budget is also 2.3X the entire spend of the Centre on schools. The corresponding figure for health and highways is 3.3 and 2.3, respectively.

There is an interesting contrast here with healthcare. Like bullet trains, the BJP manifesto had also promised a plan for universal healthcare. This is much needed. India’s healthcare system is shambolic and according to a World Health Organisation study, ranks 112th in the world (for context, eastern neighbour Bangladesh ranks in at 88, a good 24 places ahead). Yet, in March 2015, the Modi government decided to scrap plans for a universal healthcare scheme due to a “constraint on India's financial resources”. This plan, which could have changed India dramatically, had a budget which was just 25% more than the Mumbai-Ahmedabad bullet train link.

The razzmatazz of a bullet train might help him politically but can Prime Minister Narendra Modi justify reducing the Mumbai-Ahmedabad commute by two hours as a more important public goal than rail safety, ending open defecation, schooling, building highways across the country or public health?
2-Friday-quotes.gif
 
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Totally misleading article. Total cost of the project of ₹ 98000 crores is spread over 7 to 10 years i.e. if all things get worked out. If Japan is giving soft loan of 80% then India will only have to spend about ₹ 20000 crores. So, India will only have to spend about 4-5 thousand crores on yearly basis. Quite doable in my opinion.
 
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