The Maha Kumbh Mela would be probably the biggest social
extravaganza in the country in the ordinary course of activity. This is because
it is a periodic event and is quite predictable. Unlike the IPL or any big
sporting event, this festival brings people from across the country to one
single location based on faith and belief. It is probably the largest
congregation of people in the world which is expected to be around 400 mn over
a period of 45 days starting on January 13 right through February 26. This festival
has historically been an exposition of how good India is in planning such
events which generally goes off very smoothly notwithstanding the numbers and
logistics involved. Needless to say, it creates a temporary economy for this
period of time covering a vast multitude of economic activity. Specifically it
would provide a boost to the economies of Uttar Pradesh and hence India. Hence,
going beyond faith, the event is very significant for the economy at large.
The Mahakumbh festival comes every 12 years while smaller
gatherings take place periodically, with Haridwar, Nashik and Ujjain being the
other centres. The economic impact can be gauged from the fact that over 400
million visitors including pilgrims would be visiting Prayagraj on this
occasion. This is much higher than the 250 mn which visited in the last
festival. In fact, the number would be higher than the overall population of
Uttar Pradesh which is around 250-260 mn. The festival attracts a large number
of overseas visitors and the accommodation that has been created aligns with
the varied backgrounds of visitors.
Preparations for this festival from the government started
from April onwards and has reached its peak in November. The first thought
which will strike the reader is the amount of money that would be involved in
this festival. As 400 million people would be visiting and coming from far and
wide (besides the local population which would almost certainly be present),
spending for travel and food (excluding stay) would mean a minimum expenditure
of between Rs 20,000-30,000 crore assuming Rs 500-750 is spent on a per capita
basis. This is so as there would be several families coming to engage in these
celebrations. The amount spent could be much higher.
Let us look at the hospitality business which would witness
a major boost. It has been reported that there would be over 2000 luxury tents
set up in this area as well as over 25,000 public accommodation. Besides, these
structures which would be put up, there would be several hotels in Prayagraj as
well in its vicinity which would offer space for visitors and also include
homestays which are registered for this purpose. The rates vary from as low as
Rs 2500 to Rs 25,000 per night depending on the amenities that are provided.
The overall business would vary between Rs 1500-2000 crore over this time
period.
In terms of softer infrastructure, the preparations include
nearly 70,000 additional street lights to facilitate movement from the river to
the various tents/hotels/home stays. To ensure that security is tight around
23,000 CCTVs are to be installed. This will provide a major boost to the
suppliers of these services/products. Over 7,000 roadways buses, 550 shuttle
buses, and 3,000 trains would be plying during the course of the festival which
can give an idea of the revenue to be generated by each of these facilities. It
may be assumed that most of these vehicles would be rented and hence may not
directly lead to purchases of vehicles. The hiring costs would work out to
around Rs 500 crore for these 45 days. The railways would also simultaneously
be generating revenue due to movement of pilgrims/visitors.
Intuitively it can be conjectured that the travel and
tourism industry would be one of the biggest beneficiaries of this extravaganza
as it would also mean ensuring the upkeep with a large retinue of staff which
could be temporary. The authorities have spoken of erecting over 1.5 lakh
toilets to cater to the requirements of the visitors which is a boost for the
manufacturers of such facilities. There is also mention of over 10,000 staff
being hired to maintain the hygiene in these toilets. Demand for these facilities
would be on the rise providing a boost to the producers of these mobile
toilets. The project for cleanliness has been valued at around Rs 240 crore.
Add to this the fact that another 25,000 craftsmen have been
involved in doing up the decorations as well as statues/paintings that go along
with such festivities, and one can get a feel of the high employment being
generated by the event. This festival hence would be a very good platform for
employment of gig workers in both the skilled and unskilled spaces. Besides,
these specialists jobs, the government administration has put out
advertisements for hiring specialists in areas of event coordination, customer
support, logistics support etc. with these jobs being for a period of three
months. An advertisement put out for recruitment of Kumbh fellows speaks of
hiring qualified persons for specialist jobs with a remuneration of Rs 40,000
per month for 6 months.
The local authority has also focused on the catering
requirement for this event. This has involved in getting all the street vendors
together and educating them about the logistics involved as well as the
hygienic conditions that have to be maintained all through the period. This
will be a boost to the micro enterprises as most of them would be this category
as there will be steady business during this period. In fact, other vendors of
religious artefacts and emblems, toys, decorations etc. would flourish and
would be in the realm of micro-shops.
The government on its part has been involved in cleaning up
the city and upgrading the roads which would be used for travel to the river
for these many tourists. Hence, this is another boost being provided to the
Kumbh economy which will also address the issue of capex spending by the state
government. The focus has been on constructing new roads and bridges through
the breadth of Prayagraj which is essential to facilitate smooth movement of
visitors. These are permanent structures and would add to the infrastructure
wealth of the state.
Hence, the UP economy would be well positioned to register
higher growth on account of the festival. Anecdotally, any extravaganza which
attracts large audiences and creates new structures provides a boost to the
local economy. The Olympics have been an example of adding significant growth
impetus to the countries organising the same. As has been seen here, the Maha
Kumbh Mela will provide the right push the economy which augurs well for the
state and the nation.
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