Read more at: http://www.moneycontrol.com/news/economy/bullet-trainsindia-reality-or-nightmare-for-govt_1122929.html?utm_source=ref_article
I have always hoped that with improved technology, railways
could serve India far better than airlines for connecting cities within 500 KM
of each other. The reduced fuel consumption, reduced emission of green-house
gases, etc. could lead to a superior solution to our travel needs.
However, now we have cost
estimates like Rs 63,000 Crores for connecting Mumbai with Ahmadabad by bullet train. The
article referred above raises reasonable questions about the logic of this bullet train
proposal. It is necessary for railways to throw some light on the possible economics
of what is envisaged. Otherwise, the credibility of the railways would be
seriously damaged.
I invite readers to do their own calculation of the ticket
price, making a few assumptions of their own: return to be expected on the
investment, the number of passengers traveling between Ahmedabad and Mumbai in
a year, etc. The results would be revealing.
Srinivasan Ramani
