On Sustainable Infrastructure Development

Housing Infrastructure Clearance Matrix

We are definitely witnessing a very good momentum here. The rise of the start-ups with capital inflow for them from financial inclusion, NRE and NRO accounts, all-term bonds, CSR offerings; but we are noticing a lower infrastructure development.
Can we have this simple golden rule for dispersion of money through infrastructure development funds from a bank?

Money Accumulation Reached/ Total Booking Value Percentage of Funding released from the bank
40% 50%
65% 70-80%
80% 80-100%
100% 100-120%

Here, only one project ties up with one bank only. Now every infrastructure in housing can have the following segments.

Housing Infrastructure – Premium, Non-Premium.

Premium can again be divided into Extra-Premium, Normal Premium.

Non-Premium can be divided into Prime and Non-Prime.

Now let us look into the table.

  Extra Premium Normal Premium Prime Non-Prime
Percentage Value of demand 10% 20% 50% 20%
Total Cash Value through projected sales 30% 30% 30% 10%
Cash Value/ Demand Ratio 3:1 3:2 3:5 1:2

Percentage value of demand is the volume of demand from the total demand for housing flats in an area or city. Total Cash Value is obtained numerically when all the sales of the housing are made. The ratio is obtained by dividing cash value/ demand, and the weight-age is given to the clearance of the projects cash value to demand is lowest.

The factors which form a positive co-relation with the development of infrastructure are: jobs in the vicinity and development of metros in mega-cities. The part which forms the negative co-relation is non-sustainable development of the country.

As a matter of fact, can CSR offerings have 10-15% of the CSR as an investment to infrastructure bonds or infrastructure?

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