Don’t miss the latest developments in business and finance.

<b>Letters:</b> Put needs of people first

Image
Business Standard New Delhi
Last Updated : Dec 14 2015 | 9:31 PM IST
There is an urgent need to improve railway passenger services in India. The list of pending items is long: more trains, more tracks, more speed, safety, hygiene and comfort. Finance and land are the obvious constraints. In this context, the Mumbai-Ahmadabad bullet train project is surprising. At current estimates, it will cost close to Rs 100,000 crore; who knows what the final cost would be since most mega projects suffer from cost overruns.

Of course, a bullet train system would become a talking point, a talismanic symbol of a modern nation and a lasting memorial to its prime mover, which is Narendra Modi. But the only users would be those who can afford air travel. Assuming that 100,000 tickets are sold every day, the cost of capital, including depreciation, interest etc, would work out to Rs 3200 a ticket, excluding operating cost. Clearly, without a massive subsidy, this venture would be broke beyond repair.

Satisfying one's ego can't be more important than satisfying the needs of millions of people, who travel in overcrowded, dirty and unsafe train compartments.

Also Read

P Datta, Kolkata

Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201 · E-mail: letters@bsmail.in
All letters must have a postal address and telephone number

More From This Section

First Published: Dec 14 2015 | 9:05 PM IST

Next Story