India-Japan Bullet Train Deal

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India is set to import iconic ‘Shinkansen’ bullet-train technology from Japan.
The train runs from Mumbai to Ahmedabad known as Mumbai-Ahmedabad High-Speed Rail (MAHSR) project.
The Japanese government is financing 81 percent of the cost, with a $12 billion soft loan carrying an interest rate of 0.1 percent.
Japan will also supplement the financing with technical assistance and training.

Length: 508-km double line. MAHSR will be passing through two States, Maharashtra and Gujarat and one Union Territory of Dadra and Nagar Haveli
Longest 21 km tunnel with 7 km undersea at Thane Creek.
Maximum Design Speed: 350 km/h
Maximum Operating speed: 320 km/h.
The project is set to be completed by August 15, 2022, when India marks 75 years of Independence.
Reduce travel time between the two cities to around 2 hours from the existing 7 hours. High-Speed Railway training Centre will be set up at Vadodara.
The project will be executed through a special purpose vehicle, the National High-Speed Rail Corporation Ltd.

Bullet train will modernize rail infrastructure in India after decades of underinvestment.
Make in India will also get a major boost as the project will spur manufacturing and create employment in the country.
The High-Speed Rail (HSR) system is more energy- and fuel-efficient. Studies show that HSR systems are around three times more fuel-efficient than airplanes and five times more fuel-efficient than cars.
Given the traffic density in Ahmedabad-Mumbai corridor, this project could lead to a significant reduction in India’s carbon footprint.
Shinkansen project has tried to minimize noise pollution. Japan has a long history of operating the system without any fatalities.
This is important for India given the challenges experienced by the Indian Railways due to recent accidents.
In Japan, the train has an average delay of less than one minute. This could help in transforming India as earlier Golden Quadrilateral and upgraded national highways added to GDP, created efficiencies in transportation, provided jobs and improved rural development.
Indian companies will imbibe the new technologies and become suppliers to High-Speed Rail contracts worldwide. Cultural transformation through a demonstrated ability to implement large projects and improve safety. This project could provide an important boost to public investment.

Bullet trains have been the symbol of Japan’s engineering prowess.
The Shinkansen is the symbol of innovation and technological advancements in Japan after the devastation of the World War 2.
For Japan, which has a strategic rivalry with China for commercial contracts abroad, the Indian project marks a victory for Japan.
The export of its bullet train know-how is crucial to revitalizing the stagnant Japanese economy.
The competition between China and Japan, especially in the ASEAN region, has been intense and in India, there will be more competition for other phases of the bullet train project.
China outbid Japan to win a $5.5 billion project in Indonesia in 2015.

In India, concerns related to costs, safety and misplaced priorities persist.
The fares for Shinkansen are costly.
Before signing on India, Taiwan had been Japan’s only successful sale. Today Taiwan has suffered heavy losses since opening in 2007.
The profitability requires high volumes of passengers and highly priced tickets.
Over the last decade, China has developed a 22,000 km high-speed rail network. It boasts the ‘world’s fastest train’, the Shanghai Maglev that hits speeds of 430 km. Its technology is also cheaper.

Land acquisition a. Acquiring new land for laying down the tracks and constructing new stations might face legal hindrances, delaying the process.
Stoppages
Increasing the stoppages will increase the journey time up to three hours.
It will defeat the purpose of high-speed connectivity that the project promises.
Profitability- Ahmedabad, and Mumbai – have airports and passengers could consider taking a flight instead of boarding the bullet train.
Deadline-Land acquisition, finalizing route design and laying down of tracks through hilly areas, across rivers and passing through densely populated regions make the deadline look ambitious.

Its successful and timely completion could act as a powerful catalyst to create a culture of efficient project implementation in India.
There should be a focus on leveraging the post-implementation synergies, which could make this a transformational project for India.
It would bring a Highly efficient work culture in India and develop sheer devotion in the people engaged in such projects.

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