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Blog Entry# 2051051  
Posted: Nov 06 2016 (23:35)

2 Responses
Last Response: Nov 07 2016 (05:40)
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Nov 06 2016 (13:47)   Japan may bag India’s second high-speed rail contract

Yuva Rahul^~   108 news posts
Entry# 2051051   News Entry# 284956         Tags   Past Edits
New Delhi: India is exploring a proposal to award its second highspeed rail contract to Japan and the two sides would work on it during Prime Minister Narendra Modi’s two-day visit to the country starting November 11.
This could be Japan’s second such project in India, just like the first high-speed rail link, which is based on the Shinkansen bullet train train technology and is proposed to connect Mumbai with Ahmedabad, indicated people familiar with the developments.
The project, proposed to connect Mumbai with Ahmedabad, is likely to be funded through a loan
from Tokyo for up to 81 percent of the cost at a nominal interest rate of 0.1 percent per annum to be repaid in 50 years with a 15-year moratorium. Indian and Japanese officials are discussing the proposal, including the route for the second high-speed rail link, which is expected to be built in southern or central India. Japan is keen to expand the highspeed rail network in India and the goal fits well with the Narendra Modi-led government’s stated agenda of revolutionising the time taken for train travel in India.
Work on the link, that includes multiple tunnels and bridges, is expected to begin in December and the network is expected to be ready by 2023-24. Tariffs on this route are estimated to be lower than airfares. Apart from this project, five other rail corridors — Delhi-Mumbai, Mumbai-Chennai, Delhi-Kolkata, Delhi-Nagpur and Mumbai-Nagpur — have been identified for running high speed trains. China is also believed to be considering participating in development of high-speed rail networks in India.
Japan, which has decades of expertise in developing and running highspeed rail networks, will be key to the government’s plan, according to people familiar with the subject. The agreement for the first link was signed in December last year during Japan’s Prime Minister Shinzo Abe’s visit to Delhi. Engineering design work for the link, which includes a number of tunnels and bridges, is expected to start in December and the network is expected to be ready by 2023-24. The government has said that tariffs on this route will be less than the airfare.
Japan is providing financial assistance for the project in the form of a loan of up to 81% of the cost at a nominal interest rate of 0.1% per annum. This loan has to be repaid in 50 years with a 15-year moratorium. The Indian Railways has identified at least five other corridors — Delhi-Mumbai, Mumbai-Chennai, Delhi-Kolkata, Delhi-Nagpur and Mumbai-Nagpur — for running 300 kmph or higher speed trains. Feasibility studies are being conducted for these routes. Besides Japan, China is also in the reckoning for developing highspeed rail networks in India.
High speed train travel for short distances between nearby towns makes sense. India should negotiate a loan on extremely favourable terms with Japan for this project as well, and more so if it is tied aid. But the Railways should not waste resources on the project and add to its debt burden. The project must be open to private sector which can take risk based on an assessment of its commercial viability. The Railways’ focus should be to modernise the rail network, and not get side-tracked.

Nov 06 2016 (23:35)
For Better Managed Indian Railways~   1933 blog posts
Re# 2051051-1            Tags   Past Edits
The second route must strictly be decided based on the financial merit in long run especially Rate of return and economic rate of return instead of rationing it or deciding on political considerations.This is because the stakes are very high, i.e. the project shall cost upward of Rs 200 Crores per k.m. Any wrong decision may badly damage IR economy or dent Indian economy.
Going for Delhi-Mum which is one of the crack options, the additional additional advantages are
(1) it shall entail construction for only AHM-DEL section only which
is 900km (the MUM-AHM shall be already existing) and reduce the costing to minimum. say about 1.8 lac crore Rs
(2) It will incorporate following sections which had been identified earlier for HST (1) MUM-AHM, (2) MUM-DEL, (2) DEL-JP
(3) same maintenance workshop constructed for MUM-AHM project shall be in a position to cater to AHM-DElhi project as well,so cost shall be saved.
(4) Mum-Delhi air traffic is extremely high and is sixth highest between any 2 pair of cities in world! These passengers are the potential traffic for bullet trains which are extremely high for this route, much higher than any other pair of options considered. So maximum clientele for bullet train exists in this route.
Top 10air traffic routes in India which shall be a main source of paxs to bullet trains are are
Data of 6months from oct'15 to mar'16. (Note the traffic has increased about 22% this yr over previous year.)
1-Mumbai-Delhi -- 31.4 lacs
2-Delhi-Bangalore ---17.48 lacs
3-Mumbai- Bangalore -16.38 lacs
4-Mumbai Goa-- 11.77 lacs
5-Mumbai-Ahmedabad-- 11.07 lacs
6-Kolkata Delhi --10.77 lacs
7-Delhi-Hyderabad-10.53 lacs
8-Mumbai-Chennai--9.97 lacs
9-Delhi-Chennai-9.89 lacs
10-Mum-Hyderabad- 9.39 lacs
It is interesting to note that 6 out of the 10 top air traffic routes involve Mumbai, where as only 5 routes involve Delhi. Where as IR runs at least 3 times the fully ac premium trains from Delhi as compared to Mumbai!!! How much the political capital get pampered by IR where air traffic is true reflection of Market demand !!!

Nov 07 2016 (05:40)
deepakyerr~   825 blog posts
Re# 2051051-2            Tags   Past Edits
I agree with you with ahmd delhi extended bullet train corridor as it I'll connect udaipur and Jaipur with Delhi as well as Mumbai. We have to take intermediate cities into consideration when planning capital intensive projects 5 cities with 20+lacs population by 2025 will make the corridor viable. Apart they should take up delhi Chandigarh ludiana amritasar as short distance high density corridor find much potential for rail traffic then air traffic. Bullet trains RRTS or any another projects planned with be independent and IR I'll be a part but I'll not be fully integrated then only they I'll run financially better with accountability.

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