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Project Financing for Sustainable Railwa...

Garg, Amit, Beri, ...

Case

Project Financing for Sustainable Railways Project

Garg, Amit; Beri, Pramod; Kasliwal, Siddhi

IIMA-PSG0132 | Published March 18, 2020 | 8 pages Case

Collection: Indian Institute of Management, Ahmedabad

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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.

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.