RITES says the project would yield an annual revenue of INR 2499 Crore in the first year of operation
अहमेदाबाद Ahmedabad (ADI): A study conducted by RITES Ltd, a government of India enterprise, has said that the annual operation and maintenance cost of the proposed Ahmedabad-Mumbai bullet train will be Rs 412 crore. The report says the rate of returns from the project will, however, be around 9% a year.
In December 2013, the central government had ordered a joint feasibility study in which RITES and Japan are involved. The report by RITES says the project would yield an annual revenue of Rs 2,499 crore in the first year of operation. The project is likely to be operational by 2021.
Minister of state for railways, Manoj Sinha, in his reply to a question seeking clarification on selecting Ahmedabad as a terminal station for the high-expenditure train project, said that the terminal location has been selected on the basis of multiple criteria. “The criteria include the traffic potential, the paying capacity of travellers, potential of leveraging land resources, availability of land for terminal, and most importantly, the linkage with central business districts,” he said.
The central government said that Japan’s study would compare high-speed rail systems in different countries providing information on technologies, costs and financing of high-speed rails. The study will be completed in 18 months and the report is likely to be submitted in June 2015.
A senior official said that if the RITES report was found to be true, the operation cost per day would be Rs 1.12 crore. This would turn out to be at par if not cheaper than airlines charges, he said.
Ahmedabad as a terminal has been finalized. From the Mumbai end, it will travel to Thane (near Diva), before heading towards Palghar via Virar, and will then follow the existing alignment in Gujarat with halts at Surat, Vadodara and Ahmedabad.