Private Contracting Of Road Construction
Vijay made his way to the hall to meet Pawan Kalyan, the patriarch of the Kalyan family.
He was intrigued about what Kalyan had to discuss with him. Considering his reputation among the noble class in the empire, he wouldn't be surprised if Kalyan had come to ask for some privileges.
"Long live your majesty, long live Vijayanagara, long live!"
Vijay, who had heard this many times, simply gestured for Kalyan to sit down.
"So, what is it that you want to talk to me about, Kalyan?"
"Your majesty, it's like this. I have recently observed the road construction going on in the empire at full scale. I couldn't help but notice that you attach a lot of importance to this project."
Vijay nodded in acknowledgement. This was not a secret, as even a fool would know that Vijay attached great importance to this project, with over a million people working on it.
"Your Highness, if I may be bold, I would like to say that a lot of resources are being wasted by how you are handling this project."
"Oh, do tell me," Vijay replied with an interested tone.
"Your Highness, to my knowledge, most of the resources and raw materials for the road construction come from the nearest rock quarry to the construction site. The construction is being carried out using a mass construction model where one person is tasked with many kinds of work. Furthermore, I have noticed that there is a shortage of civil servants to oversee the project, which leads to decreased efficiency and motivation among the workers."
"Well, what you said is indeed true. Now, what is the point you are trying to make?"
"Your Highness, in my humble opinion, if you could appoint the right person for the job, the project's efficiency could increase at least twofold. We need someone who is familiar with the local terrain, possesses knowledge about the construction industry, and wields significant influence over the local area. If you could consider this, your Highness, I would like to recommend my family for this important task. Our family has been loyal to the Vijayanagara Empire for generations, and we have a dedicated group of artisans capable of handling this job with perfection. Moreover, we have earned immense prestige in our local area, ensuring there will be no issues with the local community. We can manage all aspects of the project seamlessly."
"If you could please grant us the right to construct the roads for Vijayanagara, it would be done faster and more efficiently Your Highness."
Hearing Kalyan's proposal, Vijay was surprised.
"Isn't this the commonly used contracting method in the future?", Vijay thought to himself with contemplation. It wasn't that he didn't want to contract the road construction to private individuals before, but the rules and regulations for private individuals to do business had not been implemented yet. However, now that he thought about it, he could start granting some power to private individuals, beginning with the construction industry. Moreover, Kalyan brought up some very important points.
No matter how well he treated the people, there would always be some lazy workers who only came for the coin and the grain. With the reputation of local nobles or wealthy merchants taking over the task, the work would be done more smoothly. Moreover, local nobles who knew the terrain better could lead to a faster accumulation of raw materials and better transportation routes.
Thinking about all this, he decided, "Very well, you've convinced me, Kalyan. But there is a catch. I will not contract out the whole construction of the road system of the Empire to you, but only a part of it where your influence is the strongest, that is Telangana if I am not mistaken."
Kalyan was a bit disappointed that he couldn't have more power, but getting the contract for road construction in his region was still a good opportunity for him. Kalyan was a smart man, and although he didn't understand the military significance of road construction, he saw the economic significance of the unified road network as an unparalleled foundation for economic growth in the Vijayanagara Empire. So he wasn't going to miss this opportunity, even if he could only contract the construction of roads in a small village.
As Kalyan was happily planning for his future, Vijay had a brilliant idea. His idea was to package the road construction with the commercial shops on the roadside in major traffic channels where the road passed through. Vijay thought, "Why don't I just give him the right to develop the shops on the roadside on the road he constructed instead of paying him an exorbitant amount of money?" He came up with this method after remembering joint packaging systems from the future. It's not like he was scamming Kalyan; it's just that the recovery of the wealth would be delayed.
"Now, instead of the government paying you the full amount for the road construction, how about this..."
Vijay explained his plan to Kalyan.
After listening to the new model, which he had never heard before, Kalyan went into contemplation.
Kalyan was a smart man, otherwise, he wouldn't have found this opportunity. Initially, getting paid immediately seemed like a good option, but the more he considered the second option, the more he felt like it was a better choice. He couldn't exactly explain why, but his gut feeling favoured the second option.
Despite his rational thoughts suggesting that this might not be the best choice, he decided to go with his instincts. "I would prefer the second option, Your Highness, but what would be the percentage of the commercial shops?"
Vijay thought about a fair percentage. He didn't want to give too much, as it could easily create a monopoly in the industry. However, considering the risk the Kalyan family was taking, he wanted to offer an acceptable number for both parties.
"Alright, The government would pay 30% of the construction cost upfront, and you would get the right to develop 40% of the commercial stores along the main road that you build, along with the shops being tax-free for 5 years. After 50 years of successful operation of the shop, you would get the first right to buy the land and the building on which the shop is located."
"Deal," Kalyan said without hesitation. In all honesty, he would have been happy with 30% of the shops, but with the added bonus of a tax-free policy and priority rights to buy the land and building, he was overjoyed and accepted immediately. Kalyan wasn't a fool; he knew that once the road, which was being constructed, connected to a network all over the Empire, the traffic of people would increase tremendously. Although it wouldn't yield much immediate result and cost his family a lot of money, in the long run, these shops would be a money-printing machine.
Kalyan left with the contract document, happy with the deal. That evening, Vijay also contacted his mother's family and informed them of the deal. Fortunately, due to their trust in Vijay, they readily accepted. But his uncle was a little skeptical about the whole plan, but he agreed nonetheless.
After the agreements were settled, invitations were sent to various noble families and rich merchant families throughout the empire regarding the project. While most of them rejected the proposal, there were some insightful ones, like Kalyan, who took up the offer.
Unbeknownst to them, their decision would make them the richest families in Bharat in the future, while those who rejected Vijay's offer couldn't help but regret their decision for the rest of their lives.