Chapter 66: 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."
"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.