Mum-Ahd bullet train needs to make 100 trips a day to be viable: IIM study

[mehboobkz]

http://news.rediff.com/commentary/2...le-iim-study/cb63293591d2518981bfa0167926e442

Mum-Ahd bullet train needs to make 100 trips a day to be viable: IIM study

The proposed bullet train between Mumbai and Ahmedabad will have to ferry 88,000-118,000 passengers per day, or undertake 100 trips daily, for the Railways to keep it financially viable, according to a report by Indian Institute of Management Ahmedabad (IIM-A).


The report, titled, "Dedicated High Speed Railway (HSR) Networks in India: Issues in Development,' states that if the Railways set the ticket price at Rs 1500 for 300 km drive per person 15 years after the operation, it will have to ferry between 88,000 and 110,000 passengers every day to ensure that it repays the loans with interest on time.


Japan has offered a concessional loan of Rs 97,636 crore to fund about 80 per cent of the project cost with a repayment period of 50 years beginning from the 16th year of operation at an interest rate of 0.1 per cent. For the remaining 20 per cent loan, the authors assume 8 per cent average rate of interest (on Rs 20,000 crore to be funded by the Centre).

Welcome to Part 2 of Air India!

 

[ManOnWall]

What, this is so stupid! Rs 1500 for a 300km journey, are you mad? Suresh prabhu has clearly stated, ticktet prices will be 40% higher than normal AC first class cost. Mum-Ahm AC1 cost is around $30.

30 x 1.4 = 42

So ticket prices should be around Rs 3000 - which is double the price. And dont forget, IR per year spends 30000 crore on subsidizing "amm junta"......

This article is stupid from the outgo

 

[Sky lord]

Like any infra structure project, it is not only about direct profits made by the railways, it is about the catalyst to economic activity in the region.

If we go by this then we should never build any non toll roads because they are all sunk costs and will never make a direct profit.