NEXT PILL OF VIAGRA

Anil Ambani once commented that after Jamnagar Infocomm project is like next pill of Viagra for their project implementation team. Any guesses after Infocomm and Reliance Energy, what will be the next pill of Viagra????

Well my guess is MEGA KNOWLEDGE CITY. Whatever Reliance does is Mega and hence we need not stress here that this also will be mega. Just to give an idea, last township they build was Jamnagar...and the total size of Reliance Jamnagar is half that of Mumbai!!!! This knowledge city will be much bigger.

So what will be the knowledge city like?

It will be city where the Ambanis will invite the Stanfords, Whartons, Harvards, IIMs, IITs of the world to open their branches. This city will also house research centers for all major technology companies of the world. Hyderabad, Bangalore will be passé.... Major IT, Biotech. Pharma giants will queue up to have their research centre here. Apart from that the city will house lot of Infotech companies (Infosys, Wipro, TCS etc.) and BPOs. The city will also have all major schools and graduation colleges. And some time later many corporate houses will shift their headquarters to this city.

The next question is why all major companies will line up to establish their office in this city?

The answer is infrastructure and talented manpower. India has the advantage of large pool of talented manpower but suffer from lack of proper infrastructure. Reliance will be leveraging this talent pool and at the same time fill the infrastructure gap. The city will have the advantage of Reliance optic fiber for communication, uninterrupted power supply from Reliance energy. Apart from that the city will have state-of-art infrastructure in the form of Mass rapid transport system, great roads, International airport, rail and road connectivity etc.

And how do they plan to finance the project?

All state government will be fighting with each other for getting this city established in their own state. The government will offer land at a throw away price in hope of attracting huge investments and creating lot of jobs. They will also offer lot of tax sops etc. Reliance will create a master plan of the city and start offering land on lease to these institutions to open their branch. Reliance will not only offer to do the construction work but will also provide them with cheap finance. These institutions will be given liberty to design their building as per their requirements but it should fit the master plan. Participating companies, institutions will make their own investments while Reliance’s major investment would be in the city infrastructure, which would be run on commercial basis. As the city is being built from scratch the construction cost of city infrastructure would be relatively very less and part of the capital cost will be financed from lease deposits received from these institutions. You may also see builder like Sahara group building small townships within the city and selling out flats. The economics of the city is based on two basic principles:
1. Buying unoccupied land at wholesale (concession) rates and selling it at retail rates.
2. Investment in infrastructure and attracting of major international players at one place will increase the value of land many times over. (Cluster Advantage)


According to our calculations the investment required by Reliance group alone in the project would be more than 50000 crores i.e. higher than any other project undertaken by Reliance so far. Apart from that participating companies and institutions will be investments in their own infrastructure.

So, are you able to dream how the city would look like? Would you like to be a part of the dream? Would you like to live in this city? Don’t forget to post your opinion. Its on first come first serve basis. Those who post their opinion will get preference in bookings.