This piece of explanation is for people still arguing against the Bullet Train (many of whom are basically Modi critics & opposing it just because it is Modi’s project) even after the knowledge of Rs.88,000 Cr Loan from Japan – here’s a quick tutorial…
Of the total cost of Rs 1.1 lac crore for the train, Rs. 88,000 Cr will be given as a loan by the Japanese govt. @ 0.1% Interest rate, payable over 50 Years, and a moratorium of 15 Years. In common parlance, it means the Indian Govt. does not have to pay anything for next 15 Years, and repay the loan in 35 years after that.
In economic sense; The NPV (Net Present Value) of the repayment schedule comes to Rs. 12000 Cr. Basically what that means is, that the Govt. is paying Japan ONLY Rs. 12000 Cr TODAY – for a loan of Rs. 88,000 Cr. Including the remaining Rs. 22,000 Cr – It means govt. is constructing the 500 Km Bullet Train for a total amount of Rs. 34,000 Cr – a paltry Rs. 68 Cr per km. To give you a perspective, an overhead Metro costs Rs. 100-200 Cr per km and underground Rs. 300-500 Cr per Km.
It is virtually a gift from Japan to India…
Now to the benefits: –
20,000 construction workers will be employed for 5 years, 4,000 permanent jobs for operating it thereafter – not to mention the HUGE demand it will generate for steel, concrete & cement.
And if you want to look at long term benefits; Just look at Europe (which greatly prospered from Eurail), China (which was able to grow its GDP because of mega projects like these) and Japan (virtually every major town connected today by bullet train network).
Lastly, the technology transfer in this project will enable India to build future bullet train projects on its own, at much lower cost – and maybe someday, make it for other developing countries – just like we are launching satellites for much advanced countries today.
Now to the safety aspects : –
The Indian govt. could have selected the Chinese offer, which was 18% lower than Japanese quote. But the Japanese bullet train system has not reported a SINGLE accident since 1964 – as against Chinese developers. These trains run on magnetic levitation, and have in-built sensors, to safe-guard them EVEN during natural disasters like earthquake – derailing is a distant probability.
At some point, you got to take these decisions, which propel you into the next orbit – or you could wait for the entire population of this country to be lifted above the poverty line, to satisfy the argument of righteous capital allocation, which is not logical & practical at all…
Some food for thought for ‘sickularists’ & ‘presstitutes’ opposing bullet train :-
1950s – When the country is poor, what is the need for spending crores on ISRO and BARC ?
( 🇮🇳 ISRO & BARC are our pride today and India is earning from launching Satellites of all countries in the world today ).
1970s – A country where people can’t own a bike, what is the use of investment by Suzuki ?
( 🇮🇳 Maruti-Suzuki changed the game & now India is manufacturing almost every known car in India itself )
1980s – When there is no electricity in houses, what is the use of spending on technology of TV & computers?
( 🇮🇳 We are one of the largest users of IT today )
1990s – When people are dying in poverty, what is the use of globalisation, liberalisation and privatisation ? Only poor will be exploited.
( 🇮🇳 We know how 1991 changed India’s development track forever )
Early 2000s – Delhi’s DTC buses are undergoing accidents, infrastructure is crumbled. Why not improve existing infrastructure rather than investing 80,000 crore for metro ?
( 🇮🇳 Metro is now the lifeline of Delhi)
Early 2000s – There aren’t enough basic roads in the country. Villages don’t have pucca roads. Why govt. spending 1,00,000 crore for National Highways ? Improve basic roads.
( 🇮🇳 NHs have revolutionised traveling in India)
Same happened with every big initiative. Why we Indians are so negative ??? Why can’t we be optimistic & support positive & visionary steps ?? Why do we want to cry poor, poor, poor, every time but do nothing and remain poor ???
🇮🇳 JAI HIND 🇮🇳