India's Bullet Train dream a very costly affairNarendra Modi government’s Bullet Train Project from Ahmedabad and Mumbai may not be financially viable. According to an estimate, the proposed trailer will have to ferry 88,000-118,000 passengers per day, or undertake 100 trips daily, for the Railways to keep it financially viable.

This estimate is not arrived with simple figures but it is an outcome by a survey conducted by IIM-Ahmedabad. The railways will have to set the ticket price for 300 Kms drive for every person and have to ferry 88,000-118,000 passengers per day so that the government can repay the loans with interest on time.

Japan came forwards with a concessional loan of Rs 97,636 crore to fund about 80 per cent of the project cost with a repayment period of 50 years beginning from the 16th year of operation at an interest rate of 0.1 per cent. Japan has offered a 15-year moratorium on loan. By then the operating costs can increase as well.