INFRASTRUCTURE: BACK ON THE SHELVES

Elections are over but it will be still sometime before the long, dry, parched season for our leaders that be will be over!!

With, corporate activities only focussed on consolidation and survival --"expansion" being a taboo word in the world of "recession"-- the bucket to collect the trickle down effect of expansion is lying dry, rusty and neglected in the corridors of power. (am tempted to write an autobiography of the 'bucket')

The going been bad for sometime..no fresh proposals for industrial licences, approvals...no real estate deals..no M&A transaction taking place..no corporate fights..Uffffffff!! whats happening to this world?? Its turning ugly!! and, to top it..the election blew a big hole!!

I have always erudited the virtues of infrastructure projects...It kills two birds with one stone!! The tap is always wet and everybody including the media are satisfied with the development work of a developing nation.

Now that elections are over and time to fill the bucket..infrastructural projects are flying fast and furious from the government shelves...Irrigation projects, housing for weaker section of the society, state roadways, power, layout development..its all up for grabs!!!

Ok!!! here's the key to get some projects:

Irrigation: size of the project: rs 1,500 crores. Kickback: 5 percent. 50% on getting the contract and 50% over running bills.

Housing: Size/rs 1000 crore: Kickback: 15% -- 5% before one gets the contract.5% on getting the contract and 5% over running bills. (Imgaine you have to part with 15% of your profit after all the hard work, sweat you have put in)

The rationality of the paybacks are on these lines: "The government pays a mobilization advance of 15 percent of the project against a BG. Which, means nothing comes from the pocket of the businessman. And, one is still left with abt 5 percent of the contract value to kickstart the project."

Was privy to a meeting where the person that be-in-charge explains: "We have devised it in such a way that you will make profit..whatever excess profit is there..thats for us. Am giving you work...where do you get contract these days. You know the situation in America..very bad!! "If you have done government contracts previously then you will understand and know how to make profits."

We now know why roads crumble just after a monsoon..why, theres a seepage in the monsoon...why driving a nail into the wall is so difficult these days...why drains are clogged!!! Blame it on 'QUALITY'!!!