20% rate of return is fabulous!! There should be no second thoughts for approving a railway project with 20% rate of return.
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Puri-Konark would be about 35km long rail line parallel to east coast and may cost about Rs 400 Crores. With only tourist traffic and almost no freight traffic, 20% rate of return to IR appears to be very difficult to realise, even if 50% of cost is borne by state govt.
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* However, in addition to benefits to IR, there are other economic benefits to Orissa Govt which shall be outcome of this project.
* The biggest benefit shall be development of Konark region, where a new Konark Rly terminus shall come up and also many hotels shall * come up to serve the tourists directly alighting at Konark.
* Puri-Bhubaneswar-Konark triangle shall be fully developed (Puri & BBS are already developed).
* More facilities & convenience shall prompt more tourists coming to Orissa, economy of Orissa shall get boost with new infrastructure and associated job creations.