Railways claim that the Ahmedabad-Mumbai bullet train project is financially viable and will fetch over 12% return.
Officials are defending the project in the wake of a debate over whether its high cost will send the railways into a debt trap. An IIM study has questioned the financial viability of the project. The study says that railways can make the project viable if the train on this route makes 100 trips a day. According to the study, a fare of Rs 1,500 per 300 kilometres should be charged to recover the cost and make the project viable.
According to the study, a high speed train on the 508 kilometre-route can carry 800 passengers. The train will have to carry 88,000-1,18,000 passengers on a daily basis. This can be only done by making 100 trips a day. “We have calculated the financial viability on the basis of 70 trips. If we increase number of trips to 100, our financial return will increase accordingly,” a high-level official told DH.
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