‘Ahmedabad-Mumbai bullet train financially viable’

By MAMUNI DAS  www.thehindubusinessline.com

The study by research scholar TS Ramakrishnan, under the guidance of IIM-A Professor G Raghuram, is significant as globally only two or three high-speed train projects are financially viable, with most of these a drag on government finances.

Internal rate of return

“The high-speed rail project between Ahmedabad and Mumbai will be able to recover costs within a decade, even for 12 per cent of internal rate of return,” Ramakrishnan told BusinessLine, adding that the train, with enough passengers and fare collections, will itself sustain the project.

According to him, 55 per cent of air passengers, 55 per cent of high-end train passengers, 38 per cent of luxury bus users and 22 per cent of car users will shift to the bullet train in the first year of operations. More info

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