Development Watch – Week #5 May ’23
Development News
Rooftop Solar a reliable source for Rural hospitals
In addition to providing uninterrupted power, rooftop solar panels are helping medical facilities cut costs. They are proving to be a reliable source of power as India’s electrical grid gets strained during the summer heat. Power cuts are frequent in India’s overmatched electrical grids. However, off-grid installations are helping provide constant electricity. Private companies like Selco, Ikea Foundation, and Indian health Ministry announced setting up solar power for 25,000 government healthcare facilities across 12 Indian states by 2026.
Recently, ONGC also announced investment of Rs. 1 trillion by 2030 in green energy. ONGC wants to grow its renewable power portfolio to 10 gigawatts by 2030. Larsen and Toubro has also set up a green energy council to being a carbo-neutral company by 2040. Their approach includes identifying emerging technology trends in green energy, advising on collaboration, and analyzing global policy developments.
Projects in Middle East for Indian engineering companies
Engineers India Limited has raised the strength of its staff from 23 to 84 in Abu Dhabi to cater to middle east region. The company, which was previously focused on oil and gas infrastructure, is expanding into other businesses such as hydrogen, carbon capture, biofuels, fertilizers and steel. The share of international business in new orders in FY23 is 30% compared to 15% in FY22. EIL is executing projects for companies including Hindustan Petroleum Corp, Indian Oil, Mangalore refinery and Petrohemicals, among others. EIL is also building a refinery in Mongolia, a urea project in Africa, and Dangote refinery in Nigeria.
10-12% growth expected in Flexible office segment
India’s flexible office segment is set to grow by 10-12% in 2023, according to a report by Colliers International. In India, flexible spaces are becoming an integral part of occupiers’ portfolio. Their share is estimated to increase to 12% in 2023, from 5-8% before Covid-19 pandemic in 2019. The APAC region is undergoing a significant transformation in the way workspaces are perceived and utilized. Sales and marketing organizations have been biggest adopters of flex spaces in their portfolios, followed by tech sector.
Guwahati Vande-Bharat express starts operations in Assam
The prime minister flagged off the Guwahati-New Jalpaiguri Vande Bharat Express in Assam. VB will boost tourism, education, trade and employment opportunities in the North East. Semi-high-speed train between Guwahati and New Jalpaiguri will also strengthen connectivity between Assam and West Bengal. The train will cover the journey in 5 hours and 30 minutes. The current fastest train takes 6 hours and 30 minutes to cover the same distance. Assam has also seen newly electrified sections of 182 km
Investment of Rs. 1 lakh Crores for airports
According to the Ministry of Civil Aviation, a massive investment of Rs. 1 lakh crores is planned for airports in India. In the past 65 years, there were 74 airports in India. In the last 9 years, additional 74 airports, heliports and water aerodromes have been built. This would be doubled to 148, and then to 200 in the next 4 years. The investment of Rs. 1 lakh crores will be a combined effort by both government and private sectors. The throughput capacity of 6 metro cities which was 22 crores per year will be 42 crores in the next 6 years. Airlines in India are increasing their capacity. Air India is also growing substantially, hiring up to cabin crew members and pilots every month. The new CEO is also bullish on their 5-year transformation and growth plan. 6 new wide body A350 planes will also be added by 2023. Air India and Air India Express have hired more than 3,900 people, including 500 pilots and 2,400 cabin crew members since the start of 2023. Air services will also commence between Delhi and Kanpur.
Air services to start between Delhi and Kanpur
Air services will begin soon between Kanpur to Delhi. Ministry of civil aviation has announced 59 new routes and 122 new routes will be announced in the future. Kanpur will be connected to Pantnagar, Aligarh, Moradabad and Shravasti. There are currently 11 airports in UP and 11 more will be started in the next 3 years. These include Chitrakoot, Moradabad, Jhansi, Ghazipur, Aligarh, Azamgarh, Saharanpur and Shravasti. The new terminal building in Kanpur will be 16 times bigger than existing terminal. The project cost is Rs. 150 Crores and will be equipped to handle 400 passengers during peak hours. This is against 50 passengers earlier. Facade of the terminal will depict the temple architecture of famous JK temple of Kanpur.
Jawaharlal Nehru Port to be developed as a smart port
The Ministry of ports, shipping and waterways has plans to develop India’s premier container port Jawaharlal Nehru Port as a fully smart port within one year. JNPA will become a fully smart port electronically connected system for better services. This would match the best facilities globally. As part of the government’s objective of green ports, JNPA will place orders in the next 3 months for setting up of 2 green parks at its facility. JNPA has seen 29 industrial units coming up in SEZ under the “Sagarmala Project”.
Europe’s biggest bus operator to enter India in 2024
Europe’s biggest intercity bus operator Flix is set to enter India in early 2024. Flix is also the owner of Greyhound, the popular American bus service. The company expects to launch its first inter-city green line in early 2024. It seeks to connect major hubs in India. The company is planning to expand into the interior at a later stage as part of scale-building. Indian government’s target is to develop 2 lakh km of national highways network by 2025. Flix operates in more than 40 countries and carries close to 300 million travellers in over 5,500 destinations globally. The German HQed company relies on an asset light model, partnering with local bus companies that have expertise to maintain daily operations. This includes bus fleet management. Flix identifies as a tech company and not as an aggregator or a meta searcher.
Common framework for startups by G20 countries
G20 member countries are working to discuss a common framework for defining startups. The issue among others would compe up for discussion during the Startup-20 Engagement Group’s, under India’s G20 presidency. The 3rd meeting would be held on June 3-4 in Goa. Mr. Chaintan Vaishnav, Startup 20 India Chair and Mission Director for Atal Innovation Mission, at Niti Aayog, said there are 5 task forces under the startup group. These are namely foundation, alliances, finance, inclusion and sustainability. The idea is to come up with a startup definition framework which is applicable across different economies.
Local Feedback
LocalFeedback.org aims to track and document actionable parameters that help improve urban and rural infrastructure. The founder, Susmita, has juggled diverse roles in real estate, project budgeting, valuation and execution on construction sites. Having traveled to more than 20 countries, she has worked across 4 regions in India. Her areas of interest include sustainable buildings, electric mobility and urban development. She visited top-ranking cities on livability indices and has presented published papers at international conferences.