« The Infrastructure fever - growing a spacious asia. | Main | Will she.. won't she... will India go do the nuke deal with America? »

ROI on Developing infrastructure

written on: April 2, 2005

If you invested your time and money in developing people you get payed back as the investor. The same thing with developing your kids, your own thoughts, ..and all, but infrastructure.

Infrastructure development leads to developing everything else around. Catalyses development of people who use the infrastructure, the facilities in the infrastructure, the cost of things sold there, etc., And, all these costs are typically to be borne by the person investing on the infrastructure... who is expecting Returns already, rather than spending more.

Truth is, ROI on infrastructure is only for the eyes, or for the business in it, not for the investor to use as money unless its leased.

This holds good very well with developing a "City". When the infrastructure like roads, freeways, airports, in a city develop, it rather than doing good to existing citizens increases costs of the real-estate, costs of living, & costs of travelling.

Labour costs also increase since developed infrastructure gives a opinion to everyone that businesses are making more money (Though the city's infrastructure may not have been developed by these businesses).

Recently, my parents toured two states in India, Bihar and Orrissa. They came back with strange feelings that living costs, transportation and food costs are too high back here.. in Chennai, Tamilnadu. Bihar and Orrissa are relatively under developed compared to Tamilnadu and Chennai especially. That explains the difference.

If you are developing infrastructure, make sure you lease it or develop it for the sheer luxury of it. :o)

Liked this article? Suggest it to others:





Content Copyrights Harish Palaniappan.
Blog owned and maintained by Floresense.com