India’s bullet train might create 20,000 employment opportunities: SBI
The Mumbai-Ahmedabad high speed rail project that was launched in Ahmedabad on Thursday by prime minster Narendra Modi and Japanese prime minister Shinzo Abe, has the potential of creating 20,000 direct and indirect employment opportunities, according to a report by State Bank of India’s research team.
After the commissioning of the project, direct employment of 4,000 employees will be created for the operation and maintenance. Further the project is likely to generate about 16,000 indirect employment opportunities.
“In addition, the introduction of the high-speed train in India will definitely bring the new opportunity of jobs and skill for young Indians, meeting the aspirations of skill India.” Said S K Ghosh, group chief economic advisor, State Bank of India.
The state of the art railway project that is being implemented is estimated to cost of Rs 88,000 crore. Notably, the project is being funded at extra nominal cost of only 0.1% (comparable rates areof 5% -7%) with a much larger repayment period.
Prime Minister Narendra Modi and his Japanese counterpart laid the foundation stone of the Mumbai-Ahmedabad High-Speed Rail (MAHSR) project in Ahmedabad on Thursday. Besides job creation, the project is expected to bring skills in the field of ballastless track construction, installation of communications and signalling equipment, power distribution system. Modern and world class practices will be adopted for maintenance of the railway system, which is expected to bring a paradigm shift in the maintenance practices currently being followed in Indian Railways.
The potential environmental benefits of high-speed rail (HSR) system are also noteworthy. According to the SBI report. Studies show that HSR system is around 3 times more fuel-efficient than Planes and 5 times more fuel efficient than Cars.