Project Financing for Sustainable Railways Project

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Abstract

The government is considering a semi high-speed rail project to tackle some of the current issues associated with the public transportation system in the proposed area. Given the hilly terrain of the area, the current means of transportation are very slow and unreliable. Several studies had shown that the lack of reliable public transport in the proposed area was hindering economic opportunities for several people of the area. Therefore, the government has decided to go ahead with the project. The project is expected to be completed in five years with an expected ridership of around 9 million (both ways) in the initial years. This will increase to 14 million in the next 10 years. Demand would be met by trains with a capacity of 675 passengers per train and the peak hour frequency would be two trains per hour(tph). The expected revenue per km would be 2.5-3 INR/km when traffic starts. Additional revenue of 20% is expected to be generated from sales of food, water and other on-board services.

Additional Information

Product Type Case
Reference No. PSG0132
Title Project Financing for Sustainable Railways Project
Pages 8
Published on Mar 18, 2020
Year of Event 2019
Authors Garg, Amit; Beri, Pramod; Kasliwal, Siddhi;
Area Public Systems Group (PSG)
Discipline Finance, Public Policy and Law
Sector Infrastructure, Transportation and Logistics
Learning Objective Understanding various components of Infrastructure (Railways) project financing. Explanation of Green Bonds, usage, the process of issuances and credit enhancement. Understanding financing options and cost components of Renewable energy projects, green building & tree cover.
Country India
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