Shree Chanakya Education Society’s Indira Institute of Management, Pune

Master of Business Administration, Semester – IV

Batch: 2021-2023(Finance)

CCA 1
Project Finance
Guided by: Prof Rohan Bhase

TOPIC: Project report and analysis of financial aspects in relation

to Mumbai to Shirdi vande bharat express

Submitted by: Group FN - 10

NAME ROLL NO

ABHISHEK DHONDGE FN A 01

AMAR MUNDEKAR FN A 08

SHANU RAJPAL FN A 60

MILIND GAWADE FN A 71

VIVEK NAIK FN B 69

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Contents
GENESIS OF THE TOPIC............................................................................................................................ 3
PROJECT FINANCE ................................................................................................................................... 5
GROWTH AND SUCCESS OF THE PROJECT .............................................................................................. 7
SOCIAL BENEFITS OF THE PROJECTS ..................................................................................................... 10
RISK RELATED TO PROJECT .................................................................................................................... 12
FEASIBILITY OF THE PROJECT ................................................................................................................ 13
FEASIBLITY STATISTICS ............................................................................................................ 14
CONCLUSION ......................................................................................................................................... 20
BIBILOGRAPHY ...................................................................................................................................... 21

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GENESIS OF THE TOPIC

Vande Bharat Express trains: PM Narendra Modi flagged off the Mumbai-Solapur Vande
Bharat Express from the Chhatrapati Shivaji Maharaj Terminus (CSMT) railway station. This
is the 9th Vande Bharat Express train on the Indian Railways network. PM Modi also flagged
off the Mumbai-Sainagar Shirdi Vande Bharat Express, which is the 10th Vande Bharat Express
train. According to Indian Railways, the two new services are the first set of Vande Bharat
trains which will run intra-state.The two Vande Bharat Express trains will connect the pilgrim
towns of Siddheshwar, Shirdi and Trimbakeshwar. The Mumbai-Solapur Vande Bharat Express
will also stop at Pune enroute, taking a total of 3 hours 5 minutes between Mumbai and Pune.
Vande Bharat Express is a semi-high speed AC chair car train service.

In a move that would bring cheer for pilgrims travelling to Shirdi and Trimbakeshwar, Prime
Minister Narendra Modi will on Friday, February 10, flag off two Vande Bharat Express
Trains from Chhatrapati Shivaji Maharaj Terminus in Mumbai. These will be the country’s 9th
and 10th such semi-high speed trains.

The express trains will facilitate travel to important pilgrimage destinations like Siddheshwar,
Akkalkot, Tuljapur, Pandharpur, Alandi near Pune, Nashik, Trimbakeshwar, Sainagar
Shirdi, Shani Singanapur.

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Of the two trains set for launch Friday morning, one will run from Mumbai to Solapur while
the other from Mumbai to Sainagar Shirdi. The Mumbai to Solapur and Mumbai to Srinagar
Shirdi Vande Bharat Express Trains will take the total number of Vande Bharat trains in the
country to 10.

Mumbai-Shirdi Vande Bharat Express Ticket Price

This semi-high-speed train will cover the approximately 340 km distance in just 5.25 hours,
running via Mathal Ghat. A ticket for travel from Mumbai to Nashik could cost between Rs
550 to Rs 1,150. The Mumbai to Shirdi Vande Bharat Express fare will range between Rs 800
for chair car and Rs 1,630 for executive class.

The executive chair car of the train is rich in features in terms of infotainment, wifi, sensor-
based doors and reading lights. Emergency Talk Back units for the safety and security of
passengers have also been provided in the executive class. The train is also equipped with mini-
pantries for passengers looking for some refreshments.

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PROJECT FINANCE

Project finance is a form of financing that is typically used for large-scale infrastructure
projects, such as the construction of highways, railways, airports, and other public
infrastructure. These projects often require significant amounts of capital and have long
gestation periods, making them difficult to finance using traditional forms of financing.

The Mumbai to Shirdi Vande Bharat Express is a high-speed train service that runs between
Mumbai and Shirdi in Maharashtra, India. The train is part of the Indian government's efforts
to improve the country's transportation infrastructure and promote tourism in the region.

To finance the construction and operation of the Mumbai to Shirdi Vande Bharat Express, the
Indian government likely used a combination of sources, including government funding,
public-private partnerships, and international financing from institutions such as the World
Bank or the Asian Development Bank.

The financing for such projects is typically structured in a way that minimizes risk for the
lenders and investors, and maximizes returns for the project sponsors. This may involve the
use of complex financial instruments such as project bonds, guarantees, and other credit
enhancements.

In addition to the financial aspects of project finance, there are also important legal and
regulatory considerations that must be taken into account. These include compliance with
environmental regulations, land acquisition laws, labor laws, and other regulations that are
specific to the country and region where the project is being developed.

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Overall, the Mumbai to Shirdi Vande Bharat Express is an example of how project finance can
be used to support large-scale infrastructure projects that have significant social and economic
benefits for the region.

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GROWTH AND SUCCESS OF THE PROJECT

Growth of the project Mumbai to Shirdi Vande Bharat Express

The Mumbai to Shirdi Vande Bharat Express is a high-speed train service in India that connects
the city of Mumbai with the town of Shirdi. This project is part of the Indian government's
efforts to modernize the country's railway system and provide faster and more comfortable
transportation options to passengers. Some of the potential growth opportunities associated
with this project include:

1. Increased Tourism:

The Mumbai to Shirdi Vande Bharat Express is expected to boost tourism in the region
by providing a faster and more convenient mode of transportation for visitors to the
famous Shirdi Sai Baba temple. This could lead to an increase in the number of tourists
visiting Shirdi, which could benefit local businesses and the economy. With more
tourists visiting Shirdi, local businesses such as hotels, restaurants, and shops are
expected to benefit. This could lead to the growth of new businesses and the creation
of new jobs, boosting the local economy.

2. Improved Connectivity:

a) Faster Travel Time: The Vande Bharat Express is designed to run at a maximum speed
of 160 km/hour, which is significantly faster than other train services in the region. This
reduces travel time between Mumbai and Shirdi, making it a more efficient mode of
transportation. The Vande Bharat Express is expected to cover the distance between
Mumbai and Shirdi in just under four hours, which is a significant reduction in travel
time compared to other train services.

b) Increased Frequency: The Vande Bharat Express is expected to run on a daily basis,
providing more options for passengers to travel between Mumbai and Shirdi. This
increased frequency will improve connectivity and make it easier for passengers to plan
their travel.

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 3. Job Creation:

The Mumbai to Shirdi Vande Bharat Express project is expected to create job
opportunities in the region, particularly in areas such as tourism, hospitality, and
transportation. This could help boost local employment and economic growth.

a) Direct Employment: The construction, maintenance, and operation of the Vande Bharat
Express requires a significant amount of manpower, which could create direct
employment opportunities. This includes jobs such as train drivers, engineers,
mechanics, cleaners, and catering staff.

b) Indirect Employment: The Vande Bharat Express could also create indirect employment
opportunities in related industries such as tourism, hospitality, and transportation. As
more passengers choose the Vande Bharat Express for their travel needs, it could lead
to an increase in demand for local businesses such as hotels, restaurants, and taxi
services, which could in turn create more job opportunities in these industries.

c) Skill Development: The construction and operation of the Vande Bharat Express
requires a high level of technical expertise and specialized skills. To meet this demand,
the government and private sector may invest in training and skill development
programs to train the workforce needed for these jobs.

4. Enhanced Passenger Experience: The Vande Bharat Express is equipped with modern
amenities such as Wi-Fi, GPS-based passenger information system, and comfortable
seating. This could enhance the overall passenger experience and attract more people
to use the train service.

Success of the project Mumbai to Shirdi Vande Bharat Express

The Mumbai to Shirdi Vande Bharat Express has been considered a successful project for a
number of reasons:

1. Faster Travel Time:

The Vande Bharat Express operates at a maximum speed of 160 km/hour, which is
significantly faster than other train services in the region. This has reduced travel time

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 between Mumbai and Shirdi by several hours, making it a more convenient mode of
transportation for passengers.

2. Modern Amenities:

The Vande Bharat Express is equipped with modern amenities such as Wi-Fi, GPS-
based passenger information system, and comfortable seating. This has enhanced the
overall passenger experience and made the train service more attractive to travelers.

3. Operational Efficiency:

The Vande Bharat Express is designed for high speed and efficiency, with features such
as automatic doors, onboard catering, and modern toilets. This has helped improve the
operational efficiency of the train service, leading to fewer delays and disruptions.

4. Cost-Effective:

The Vande Bharat Express is priced competitively compared to other train services in
the region, making it a cost-effective option for passengers.

The Vande Bharat Express operates at a maximum speed of 160 km/hour, which is
significantly faster than other train services in the region. This has reduced travel time
between Mumbai and Shirdi by several hours, making it a more efficient mode of
transportation for passengers.

The Vande Bharat Express is an electric multiple unit (EMU) train that runs on electric
power, making it more energy-efficient than diesel locomotives. This reduces the cost
of fuel and maintenance, making the train service more cost-effective in the long run.

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SOCIAL BENEFITS OF THE PROJECTS

The Mumbai to Shirdi Vande Bharat Express, also known as the Shirdi Sai Nagar Vande Bharat
Express, is a high-speed train service in India that connects the city of Mumbai with the
religious town Shirdi, famous for its Sai Baba temple. This train service provides several social
benefits to the people using it and the communities it serves. Here are some of the social
benefits:

1. Improved connectivity: The Vande Bharat Express has improved connectivity

between Mumbai and Shirdi, making it easier for people to travel between these two
destinations. This connectivity enhances social interactions and strengthens the cultural
and economic ties between the two regions.

2. Time-saving: The high-speed nature of the Vande Bharat Express reduces travel time
significantly compared to other modes of transportation. This benefit is particularly
important for people traveling for religious purposes to visit the Sai Baba temple in
Shirdi, as it allows them to reach their destination quickly and spend more time at the
religious site.

3. Enhanced accessibility: The Vande Bharat Express offers enhanced accessibility for
people with disabilities and the elderly. The train is designed to be more inclusive, with
features such as ramps for wheelchair access, specially designed seating arrangements,
and accessible toilets. This helps create a more inclusive and equitable
transportation system.

4. Economic development: The improved connectivity provided by the Vande Bharat

Express contributes to the economic development of the regions it serves. The increased
ease of travel encourages tourism and boosts local businesses, creating employment
opportunities and generating income for the local communities.

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 5. Reduced environmental impact: The Vande Bharat Express is an electric-powered
train, which reduces greenhouse gas emissions compared to other forms of
transportation, such as cars or buses. This helps mitigate the environmental impact and
contributes to a cleaner and greener transportation system.

6. Infrastructure development: The introduction of the Vande Bharat Express requires

the development of railway infrastructure, including new tracks, stations, and
maintenance facilities. This infrastructure development not only supports the train
service itself but also benefits the overall transportation network in the region,
improving connectivity for both passengers and cargo.

Overall, the Mumbai to Shirdi Vande Bharat Express provides social benefits by enhancing
connectivity, saving travel time, improving accessibility, promoting economic development,
reducing environmental impact, and contributing to infrastructure development. These benefits
positively impact the lives of people using the service and the communities along the route.

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RISK RELATED TO PROJECT

As with any transportation project, there are several risks associated with the Mumbai-Shirdi
Vande Bharat Express project. Some of the major risks are:

1. Technical Risks: Building and operating a high-speed train system is a complex engineering
feat that involves several technical challenges. The project could have faced technical difficulties,
such as train derailments, signal failures, or communication breakdowns, which can compromise
passengers safety and disrupt the services.

2. Financial Risks: The Mumbai-Shirdi Vande Bharat Express project required significant
investments to construct and operate. If the project fails to generate sufficient revenues or runs
over budget, it could result in financial losses for the government or investors.

3. Operational Risks: The efficient operation of the Vande Bharat Express required a highly
skilled workforce, including engineers, maintenance staff, and train operators. Any operational
errors or mistakes can lead to service disruptions or safety issues.

4. Environmental Risks: The construction and operation of the high-speed train could have a
significant impact on the environment, including noise pollution, air pollution, and disruption of
ecosystems. These risks could lead to regulatory compliance issues, community opposition, or
legal challenges.

5. Political Risks: The Mumbai-Shirdi Vande Bharat Express project could face political
opposition or criticism from different stakeholders, including political parties, local communities,
and environmental groups. Political instability or policy changes could also affect the project's
funding or operation.

Conclusion-
Overall, the success of the Mumbai-Shirdi Vande Bharat Express project depends on careful
planning, effective risk management, and robust implementation. It is crucial to address these risks
proactively and take necessary measures to mitigate them to ensure the safety, efficiency, and
sustainability of the project.

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FEASIBILITY OF THE PROJECT

The feasibility of a transportation project depends on various factors such as funding, technical
requirements, environmental impact, and government regulations. In the case of the Mumbai-
Shirdi Vande Bharat Express project, the Indian government has proposed this project to
improve the connectivity between Mumbai and Shirdi, a popular pilgrimage center in the state
of Maharashtra.

The Vande Bharat Express is a high-speed train that runs on the tracks with a speed of up to
160 km/h. The train is designed to be energy-efficient and equipped with modern amenities
such as Wi-Fi, GPS-based passenger information system, and modular toilets.

The feasibility of this project would depend on several factors, such as the availability of funds
to construct and maintain the infrastructure required for the high-speed train, the technical
feasibility of running such a train on the existing railway tracks, and the potential
environmental impact of the project.

Additionally, the demand for the service, the fares and competition from other modes of
transportation also play a crucial role in determining the feasibility of the project.

Overall, with proper planning and execution, the Mumbai-Shirdi Vande Bharat Express
project is feasible and provide significant benefits to commuters and travellers. Some of the
salient features of the Vande Bharat trains are:

• European style comfortable seats. The Executive Chair Car seats can rotate up to 180
degrees.

• Bio-vacuum toilets with touch-free amenities

• Fully sealed gangways for dust-free environment

• Better fire-fighting safety measures

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 • On-board wifi, charging points with each seat

• Modern Mini Pantry

• Concealed roller blinds

• Special air-conditioning duct for silent and equal distribution of air

• Automatic plug doors and touch-free sliding doors

• Emergency windows in each coach

• Aircraft style diffused LED lighting, individual reading lights

• control centre

• Emergency lighting in each coach

• Emergency talk back units

• Better flood proofing for underslung equipment

• Special lavatory for divyangjan passengers

• Better heat ventilation with air conditioning control by using higher efficiency compressor
with UV lamp for germ-free supply of air

• 32 inch passenger information and infotainment system in each coach

• KAVACH indigenous anti-train collision system

• Platform side cameras including rear view cameras

FEASIBLITY STATISTICS

The newly launched Shirdi Vande Bharat Express that runs between the Chhatrapati Shivaji
Maharaj Terminus (CSMT) and Sainagar Shirdi is already a hit among passengers with 70 per
cent occupancy. The trains were launched on February 11, within a month of its launch, both
the Vande Bharat trains have carried 1,00,259 passengers in a period of 32 days. The immense
popularity of these trains have registered a revenue of Rs. 8.60 crore since their introduction

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on 11 February. and ever since then have been getting a good response and witnessed 64%
occupancy from Shirdi to Mumbai and 74% occupancy in the opposite direction, reported TOI.

However, the passenger occupancy from Nashik, in both directions, has been comparatively
low largely due to inconvenient timings.

The response in the Nashik route is comparatively lower than the other halts because it
generally takes 1.5 to 2 hours to reach Shirdi from Nashik by road while the train takes more
than 3 hours due to several halts and different rail routes. Thus, passengers prefer to travel by
road from Nashik.

"This train is receiving around 70% response in both directions. Since there is scope for
increasing the occupancy, we are taking suggestions from the people about the ways and means
to increase the same," Anil Bagle, the assistant commercial manager of the Bhusawal division.

The tremendous success of these trains has given fillip to providing modern, comfortable and
hi-speed transport to its esteemed passengers by Railways.

Source : Times of India.

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Project finance analysis using cash flows

As of now, Vande Bharat Express, being a project of the Indian Railways, does not have
separate financial statements available in the public domain. The financial statements of Indian
Railways are consolidated, and the revenue and expenses related to Vande Bharat Express
would be included in those statements. However, the Indian Railways does provide an annual
report that contains information on its financial performance, operations, and other related
matters. These reports can be accessed on the official website of Indian Railways.

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INNOVATIVE PRACTICES FOLLOWED

• The Vande Bharat Express train has an intelligent braking system which
enables better acceleration and deceleration.
• All coaches are equipped with automatic doors; GPS based audio-visual
passenger information system, on-board hotspot Wi-Fi for entertainment
purposes, and very comfortable seating. The executive class also has rotating
chairs.

• All toilets are bio-vacuum type. The lighting is dual mode, viz. diffused for
general illumination and personal for every seat.
• Every coach has a pantry with facilities to serve hot meals, hot and cold
beverages. The insulation is meant to keep heat and noise to very low levels for
additional passenger comfort.
• The Vande Bharat Express has 16 air-conditioned coaches of which two are
executiveclass coaches. The total seating capacity is 1,128 passengers. It is much
more than the conventional Shatabdi rake of equal number of coaches, thanks to
shifting of all electricequipment below the coaches and seats in the driving coach
also.
• It also has provision for Divyang-friendly facilities.

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 • Adding up the green footprints, the train has a regenerative braking system in the Vande
Bharat Express coaches which can save up to 30% of electrical energy.
• The Vande Bharat Express train has fully sealed gangways and censored
interconnecting doors for a dust free environment.
• A fire survival cable indoor circuit will also be an available on the train. There will also
be an improved air conditioning system

Enhanced Safety:

The Vande Bharat 2.0 trains have the KAVACH (Train Collision Avoidance System)for
enhanced safety in operations. There will be improved security with four emergency
windows added in every coach. There will be four platform side camerasincluding rear
view cameras outside the coach instead of two earlier. The new coacheshave Level-II
safety integration certification for better train control. Vande bharat also has better fire
safety measures with Aerosol based fire detectionand suppression system in all electrical
cubicles and toilets. There will be superior flood proofing for under-slung electrical
equipment to withstand floods up to 650 mm heightas compared to 400 mm earlier. The
train will also have four emergency lightings in every coach in case of electric failure.

Improved Amenities for Passengers:

There will be enhanced riding comfort for passengers at 3.5 riding index. The new
Vande Bharat will also have 32-inch LCD TVs in place of the earlier 24-inch TVs. There
will be a passenger information and communication system in Vande Bharat.

15 percent more energy efficient ACs with dust free clean air cooling of traction motor
will make the travel more comfortable. Side recliner seat facility which is being
provided to Executive Class passengers, will now be made available for all classes. The
Executive Coaches have the added feature of 180-degree rotating seats. The train will
also have bio vaccum toilets with touch-free amenities. The trains will also have wi- fi
content on demand.

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Other Enhancements:
The Vande Bharat has finer heat ventilation and air-conditioning control through higher
efficiency compressor, with Ultra Violet (UV) lamp for germ-free supply of air. The
train’s time to reach 160 KMPH will be 140 seconds, compared to 145 seconds earlier.
There will be driver-guard communication with voice recording facility. There will be
change of formation with non-driving trailer coach in the middle for better acceleration
and deceleration. The train will have better ventilation for traction motor for better
reliability. There will also be two signal exchange lights on the coaches for exchange of
signal with the way side stations.

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CONCLUSION
The Mumbai to Shirdi Vande Bharat Express provides social benefits by enhancing
connectivity, saving travel time, improving accessibility, promoting economic development,
reducing environmental impact, and contributing to infrastructure development. These benefits
positively impact the lives of people using the service and the communities along the route.

The success of the Mumbai-Shirdi Vande Bharat Express project depends on careful planning,
effective risk management, and robust implementation. It is crucial to address risks proactively
and take necessary measures to mitigate them to ensure the safety, efficiency, and sustainability
of the project. The tremendous success(70% occupancy) of these trains has given fillip to
provide modern, comfortable and hi-speed transport to its esteemed passengers by Railways.
Overall, it is a successful project with 70% occupancy on an average in a round trip.
Risk analysis and mitigation at earlier will lead to more success of the project in coming
years.

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BIBILOGRAPHY

➢ Times of India
➢ Mint.com
➢ Gov.rail.in
➢ Maharashtra Irctc annual report

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