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Rate of Return (RoR) of a project is the single most important parameter which help decide whether the project shall be prifitable/desired or not. It should be a notch above (3-5%) above the rate of inflation so that the project can lay back the cost of construction in due course of time. It should be at least equal to or more than 13%.
One party (IR) pegging RoR of IND-MMR NL project at 9-10 % and other party (Mr. factual ?) claiming it to be 30.7%, are making a mockery of whole project implementation process.
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is quite possible that IR officials may not have accounted for all the freight/container traffic from the region, but very high figure of 30.7 % RoR being claimed by other party seems quite improbable.
Even if all the claimed 12000 containers carried by rail, and decent passenger and other freight traffic comes to the section, the 30.7% RoR seems highly improbable.
Even with 9-10% RoR the project should be worth implementing as it will immensely benefit the backward tribal districts like Jhabua, Dhar etc. and bring in other economic benefits not accounted for in the project RoR. State/Central Govts have to take interest in the interest of development of economy and people.
More over, one more line shall have to be laid from MMR-Kalyan (already super saturated section) to carry the traffic forward. Are there any plans in IR for the same?
Again Mumbai-Indore, (CSTM-MMR-258km, MMR-MHOW-339km, MHOW-INDB-21 i.e. total) shall be 618 km and saving shall be 212 km only and not 250km as claimed in the report.