In India, last week's bullet train project was inaugurated. There is a lot of debate in India regarding the relevance of this bullet train project.

Will bullet train be successful in India?

Previously the Japanese bullet train failed in Taiwan. The question arises that, when India has finalized the agreement from Japan, would the failure of Taiwan be in its mind?

Taiwan started working on the bullet train project in the 90's. For the first time on January 5, 2007, the bullet train ran.

However, after seven years, the company which landed this project on the verge of being bankrupt.

The Nikkei Asian Review published a report on November 5, 2015 about the failure of the bullet train in Taiwan.

In Asian countries, there is a situation of competition in China and Japan to achieve the contract of bullet train project. Even in India, when talk of a bullet train, China had also shown interest with Japan.

Nikkei has written in its report, "Taiwan started the high speed rail base of Japanese bullet train system. The sad thing is that it had to take heavy deficit. The Taiwanese high speed rail operator has recently decided to take a bailout package from the government there so that it can be withdrawn from the crisis.

When the bullet train started in Taiwan in 2007, the town Taipei was connected to the southern city of Chaosiung in the north. It was less than a half hour's journey.

A group of seven Japanese companies helped in bringing the bullet train to Taiwan. In this trading house Mitsui and Co., Mitsubishi Heavy Industries both worked together.

In Taiwan, when the train arrived, there was a lot of pride in it, but in a few years it was caught in a financial crisis. The cost of the bullet train was $ 14.6 billion in Taiwan.

Supervisors believe that the company has been in vain since the beginning. On the other hand, a representative from the Japanese company said from the Nikkei Asian Review that the advantage of this project was not easy soon.

After all, what was the reason for the failure of the bullet train in Taiwan? The number of passenger traveling through this bullet train is quite small. This was the biggest impact on the company's balance sheet.

According to the results of the Consultancy Survey and other data, the company was expected to receive two lakh 40 thousand passenger in a day in 2008. In 2014, there were only one lakh thirty thousand passenger each day, which is considerably less than the estimate.

The company had to pay heavy interest in the bullet train instead of the cost, which could not be balanced with profit.

Japan is helping about 80 percent of the bullet train project in India. India has to pay 0.1 percent interest on this amount. However, India and Taiwan can not compare the project.

Ahmedabad and Mumbai's root is the full of industry and commercial areas. The interest has pay to Japan after 15 years and the rate is very low.

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