Late Extra: New investment concept targets the old

A majority of Non Resident Indians, especially those in those in the Gulf, at some point of time have to embark on hectic visits to India to organise and provide for their elders.

A stage comes when merely sending money to one's elders is not enough. Of course money is needed not just for day-to-day expenses but also in the final countdown for medicare.

But its just not money that the elders of the NRIs need at times but expert medical and nursing care. And that is in short supply. Not all NRIs are able to rush to their elder's bedside whenever they are asked for. That is where geriatric care centres step in.

Northern India's first geriatric centre is now being set up in Lucknow, the capital of the chaotic and most populous state of Uttar Pradesh. I never imagined that this laid back city of 'nawabs' would come up with such a pioneering project. But it has.

The project is underway, land has been acquired and a data bank on the elderly in the city and its surrounding towns is being prepared.

In this part of India this is a new concept but I was pleasantly surprised to learn from bankers and financiers that the institutions are willing to support projects of this kind.

Interest rates

They pointed out that presently the interest rates are low and the banks are burdened with excess liquidity. Real estate borrowings are rated as the safest as the asset is secure in case of default because of the land and construction valuation.

For this special category of project they said they have ordered a feasibility study to examine whether investment in geriatric care centres will be financially viable.

Their main concern is that the Indian culture cutting across religious and economic lines could prove a drawback to the establishment of such centres. Unlike other parts of the world where such centres and old peoples homes have worked, they point out that those have a support structure in the form of the welfare state provisions.

Despite that it is the attitude of the target citizenry of a given country. In India lodging one's elders in an old peoples home even today is not considered favourably by the society.

But as the world becomes more of a global village and millions of Indians leave their homeland for opportunities in other countries, the dilemma of what to do for the elders of the family grows. Some countries do not allow guest workers to bring in their elder dependents.

In other countries the cost of medicare is prohibitive and medical insurance costs are steep. Keeping those factors in mind, it is generally felt that the time has arrived when the Indian populace will look at such projects with maturity and accept the concept.

The Lucknow project's initial cost estimate is around $250,000. Bankers said that with the present strength of the Indian rupee, special equipment, which may have to be imported, could be bought at competitive prices.

One of the reference points for the study is the population of the elderly who are no longer able to take care of themselves independently and what percentage of these have other relatives to look after them.

By all estimates the observers' hunch is that the number of such elders may run into thousands. If the latter is proved correct and an attitudinal change is foreseen, then such projects would not only be financially viable but also meet a growing social need.

Mortality rate

Investments in this sector by NRIs could be a viable investment both in monetary terms and as a social service.

The government has realised that with the old age mortality rate declining, the country would have to look after its growing population of elders. Through the Life Insurance Corporation of India, it has launched a new insurance scheme for old age pensioners. That is just one step in the right direction. The second would be the setting up of proper geriatric care centres.

Arun Solomon is an India-based journalist