Statue of Unity: First Year Performance | Analysis by Dhruv Rathee - YouTube

Hello friends

On the first date of this month, that is on the 1st of November, 2019,

it has been one year since the construction of the Statue of Unity

So I feel like it would be the apt time to analyze how its performance has been

Was it successful? Or was it a failure?

Come let us analyse it by looking at the complete data

And I'd also like to tell you that in this video,

there'd be a personal finance lesson for your personal lives that you can learn from this statue

Come let us see

In the official press of the Statue of Unity released on 11th November,

there is a data that reads that from 31st October, 2018 up til 1st November 2019

that is, exactly in between the period of one year, 27 lakh tourists came to visit it

2.7 million tourists came to see it in the first year

The revenue generation because of these tourists in one year was 80.66 crore rupees

Approximately, I'd say this statue earned 80 crore rupees in its first year

This number is far higher than my estimations in my video of last year

I'd estimated that on average, around 1 million people would come to see it per year

And there'd be a revenue generation of 35 crore per year from it

Keeping in mind these numbers, can we conclude

that the Statue of Unity has been a profitable and successful project?

To see the success and profitability of any investment, you need to see its return on investment

Return on investment is how much money you've invested and how much money you're getting back

So 3000 crore Rupees were invested in the Statue of Unity and per year, 80 crore rupees are coming back

Calculating in percentage, 2.7% is the return on investment of the Statue of Unity

What does this 2.7% mean?

If you'd deposited Rs 3000 crore in a bank, then you'd get 6%return on investment in a savings bank account

Do you understand?

Even if you had merely let such a huge amount of money lie dormant in a bank,

then too, it would generate more profit than the statue of unity merely by lying dormant in a bank

And you see an even more critical fact in the inflation rate

You must already know how the value of money decreases with time due to inflation

Foe example, as a fact I'd like to tell you that if you earned 1 lakh rupees in 1984,

and you kept that 1 lakh rupees as cash in your house,

If you do not use that cash in 2016, the value of that 1 lakh would be merely 7,600 rupees due to inflation

If you look at India's average inflation rate in the last 10 years, then it would be around 5%

And do understand that if the return on investment on anything is lesser than the inflation rate,

then you're bearing a loss there.

Your money is getting wasted if this is happening

And the same thing prevails with the statue of unity

Inflation rate is 5%. Return on investment of statue of liberty is 2.7%

And it would be very difficult to maintain this rate of the return on investment

I believe this would fall further in the future

And do you know what this means?

This means that the 3,000 crore rupees that have been squandered will never be recovered

It will never be able to recover its cost due to inflation

It was able to manage a return of 2.7% it its first year but in the coming years

In my opinion, it is going to decrease steadily because this was the first year and hence was hyped more

that there's a statue of unity which is new monument. The ones interested might have already visited it this year

And the number of tourists in the coming years will drop

And you must have seen that this was advertised about a lot

Its advertisement could be seen from Delhi metro uptil Chennai

There isn't an official figure on it, as of November 2019, but there is an official figure of January 2019

which stated that in the first two months, 2 crores were spent to run ads for the statue of unity

to publicize it in front of people

Over this, add on the employee paying cost, repairing cost and maintenance cost

Talking about maintenance, last year there was flooding in the statue of unity when it was raining nearby

When it rained nearby, the area in the statue- the viewing area got flooded

When they were asked why this was happening, they said that this wasn't a defect

We have designed it in such a way that this will happen

Hear on, they spent another 2 crores to make another statue near the statue of unity, in the vicinity

Do you know (a statue) of what?

A statue of a dinosaur

They invested a further of 2 crore rupees to construct the statue of a 30 feet high dinosaur

And within a week, that statue collapsed

I mean... First of all, why are they constructing this dinosaur statue?

Are people not coming to see the statue of unity that you're constructing another one and investing money in it?

And then too, the quality of the statue was so that even after spending 2 crore rupees, it collapsed

This kind of quality means that there would be huge costs of maintenance and repair in the coming years

Summing up, upon seeing the data of one year, it is clear how big of a waste of money this statue of unity is

But the government will never admit this fact

The ministers sitting in the government... What do I tell you? They talk such pretentious talks

You'd be suprised to hear

Piyush Goyal ji says that in the next 4-5 years,

The Statue of Unity would generate a revenue of 1 lakh crores every year... 1 lakh crores!

Let us look at some Maths regarding this

I know that Piyush Goyal ji does not like a lot of Maths because

according to him, while discovering gravity, Einstein never used Maths

..."Don't get into those Maths..."

"those Maths have never helped Einstein discover gravity"

Piyush ji, look... Maths does come in handy

The big brags that you claim are exposed with the help of Maths

If we assume that 27 lakh visitors come every year to the statue of Unity,

To generate 1 lakh crore rupees... 1 lakh crore divides by 27 lakh is 3.7 lakh rupees

That is, every visitor will have to buy a ticlet of 3.7 lakh rupees if this amount of revenue has to be generated

Another thing which they do is spread fake news to conceal their mistakes

they circulate false whats app forwards

A similar fake Whatsapp forward poster went viral

which claims that the Statue of unity attracts more visitors than the Taj Mahal

This poster reads that the merely 7 lakh 50 thousand people came to see the Taj Mahal per year

whereas 26 lakh people came to see the Statue of Unity

This is clearly a lie

According to the Lok Sabha data, in the one year between 2016-17, Taj Mahal had 60 lakh vistors

This number is a lot more than the number on the Staue of Unity.. it is almost double

And you can guess who spreads fake news like this.. It is written on the poster itself

Nation with Namo

You might remember that Nation with Namo is a very popular page on Facebook that eulogizes Modi

This page spent more than 1 crore rupees during the time of elections over facebook ads

Ads that spread fake propaganda and brainwash people

And you yourself can confirm this figure of 1crore rupees

How much is spent by Facebook pages on ads is a publicly available information

Go to the Facebook page, click on the "i" button

you will get to see how much money the Facebook page has invested in ads

And this page, which spreads fake news like this, has invested 1 crore rupees

But coming back to the topic, I had said that there is a a financial tip for you in this video

It might be that you have already understood what that is

The tip is that if you invest money somewhere and the return of investment is lesser than the inflation rate,

then you need to understand that this means a loss of money for you

For example if a friend tells you to invest in his business and promises to pay you a certain sum back every year

He promises a certain amount of profit every year

Then you have yo see how much money you have invested,

and what percentage of it you are getting back each year

So this is a a very small but basic personal finance tip that is valid every where

regardless of whether you invest it in gold, property, FD or mutual funds

But do keep in mind that there are some investments in which

you do not have to view return of investment in terms of money

There are some investments that can give you returns in other ways

For example, buying property

Property is also giving you a house to live in

so in that sense it will be a better return of investment

if not viewed only in terms of money

Similarly, if our government uses our tax money to build hospitals and schools

the return of investment there isn't huge in the terms of money

But we get better facilities and we can send our kids to study in school

who can then better utilize these better facilities to imbibe a better education

So in that sense, it is a better return of investment in other aspects

Now I know what some people will comment here

They might say that the Statue of Unity may not be a good return of investment in terms of money

But it is a very good tourist site, it is giving jobs to people

So many people are getting employment because of it

But this logic does not fit well

Because had that been the main purpose,

if giving jobs and employment to the people was the main purpose, then it could've been done in a better way

The government could have opened a skill development centre instead of constructing a statue,

which would enable more people to get jobs

Then some people would say but it is atleast a tourist attraction

which is providing people with a return of investment in the sense of enjoyment

In the sense of enjoying a tourist

But this does not fit well either because if they had to invest money from the point of a tourist attraction,

then this could have been done in a much better way

A very good example of this is the video I made on the Jatayu statue

They have made a much better tourist attraction only in 100 crores

You can click on this video and watch it

So I hope that you agree with my opinion

Share this video if you agree

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We will meet in the next video

Thank you