Prime Minister Narendra Modi and his counterpart Shinzo Abe laid the foundation stone for India's first bullet train project at the athletics ground near Sabarmati railway station. Japanese PM Shinzo Abe started his speech with "Namaskar" and ended his speech with "Dhanyawad", even though his speech was in Japanese.
Shinzo Abe praised PM Narendra Modi as a far sighted leader and also committed Japan to the scheme, 'Make in India'. PM Narendra Modi praised the bullet train project and said it would create employment in India. Prime Minister Narendra Modi said, "No country can grow unless it has a dream and a goal. Unless it takes steps towards achieving that. Today, India has taken a big step in that direction." He congratulated "all 125 crore people of India" on the inauguration of the country's first bullet train.
The bullet train would pass through Mumbai, Thane, Virar, Boisar, Vapi, Bilimora, Surat, Bharuch, Vadodara, Anand, Ahmedabad and Sabarmati. Now to the big question....Why a bullet train is good for India? Want to know more on investment planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.
The Prime Minister wants the train to start on August 15th 2022. This would be when India completes 75 years of Independence. So why would India need a bullet train?
This is what PM Narendra Modi has to say, “If somebody tells you to take a loan and return it not in 10 or 20 but in 50 years, will you believe it. India has got such a friend (Japan) which has promised to provide Rs 88,000 crore loan at 0.1% interest.” The INR 1.1 Lakh Crore bullet train project is a joint venture between Indian Railways and Japanese firm Shinkansen Technology.
Why is the bullet train project free? If any loan is borrowed from a bilateral development financing institution an interest of around 3-7% needs to be paid. The repayment period is around 20 to 30 years. Now, Japan is giving India a loan of INR 88,000 Crores out of the ambitious INR 1,10,000 Crore project. Japan is charging India an interest of just 0.1% a year. This loan needs to be repaid in 50 years. This loan also has a grace period of 15 years.
Japan is funding more than 80% of the bullet train project through a loan with very low interest and a grace period of 15 years and there is no strain on India's existing financial resources. So the bullet train project is free.
SEE ALSO: India Goes For The Bullet Train
Construction jobs: The bullet train project is really great for the construction sector in India. According to a report by SBI research team, the MAHSR (Mumbai-Ahmedabad High Speed Rail Project) has the potential of creating 20,000 direct and 16,000 indirect employment opportunities.
The construction sector in India will benefit from Japanese technology and work culture. India can benefit from the ballast-less track technology. Unlike traditional railway tracks ballast-less tracks require less maintenance. The bullet train project also has an undersea tunnel and the construction sector in India can benefit from this technology. India will also benefit from elevated train technology.
India gets the benefit of Shinkansen bullet train technology: The Shinkansen bullet train is one of the fastest in the World. These trains have never been in any accident since 1964. It also has 0 passenger fatalities. Imagine if Indian railways can tap into this technology? Currently Indian railways is having issues with railway safety and this problem could soon be solved.
The Shinkansen bullet train does not allow more than 1 minute delay. If the train is delayed by more than a minute, the staff has to give an explanation.
Yes, the Japanese Shinkansen high-speed E5 Series train is coming to India. The seating capacity is around 750 passengers which will be increased to 1250 passengers. India's first bullet train will have 10 coaches which will later be increased to 16 coaches. The bullet train will have 2 types of coaches. These are the economy class and the executive class. The economy class has the 3+2 seating configuration.
The executive class will have comfortable cushioned seats with a backrest. It will also have a 2+2 seating configuration. Your bullet train ride will be comfortable and silent with rotating seats and vacuum toilets. There will be two extra-spacious toilets for wheelchair-bound passengers.
The bullet train will have multi-purpose room for breast feeding and sick passengers, wall-mounted type urinals, baby toilet seats and western style toilets.
Yes...The bullet train project is great for India. India can make cheaper bullet trains and export them to the World. India will soon be a super power. Be Wise, Get Rich.
Mr. C S Sudheer is the founder and CEO of IndianMoney.com – India’s largest Financial Education Company. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
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