Development Watch – Week #1 September ’23
Development News
1,700 Crores invested for NE Inland Waterways
The Union Minister of Ports, Shipping & Waterways inaugurated the roadshow for the Global Maritime India Summit (GMIS) 2023 in Guwahati. The Minister highlighted the significant investment made by the government in the inland waterways sector in the recent years. He also highlighted how the role of inland waterways has evolved as an alternative mode of transportation and has received investments worth Rs. 5,200 Crores since 2014. This would unlock huge trade and commerce potential for all countries as well Indian states in the south Asia region. Indian ports are now coming to global standards, facilitating greater industrialization, manufacturing and ease of doing business.
Tremendous possibilities for Aerospace Players
Amidst the global aerospace segment facing headwinds of geopolitical issues and supply chain woes, India is being deemed as a “promised land” that can help offset risks. The International Aerospace Conference was recently organized on the theme “Moving towards Inclusive Global Value Chain” in Gwalior. India is one of the fastest growing aviation markets. The number of air passengers is expected to reach 42.5 Crores by 2035 from current 14.5 Crores. The number of airports, heliports and waterdromes in India will increase from 148 to 200 in 3-5 years. The Conference was part of B20 event curated by CII in partnership with Civil Aviation Ministry and Society of Indian Defence Manufacturers.
First woman Chairperson of Railway Board
Ms. Jaya Verma Sinha, formerly senior railway traffic service officer, has been appointed chairperson of the Railway Board. She is the first woman in 166 year history of Indian Railways to become the chief executive of the board. She assumed charge on September 1. Appointments committee of the Cabinet approved her appointment of Ms. Sinha. she also served as a Member (Operations and Business Development). She was also responsible for the overall transportation of freight and passenger services on Indian Railways. In her 35 year career, Ms. Verma has worked on diverse verticals spanning operations, commercial, IT and vigilance. She was also the first woman to be appointed as the Principal, Chief Operations Manager of South Eastern Railway. Ms. Jaya Verma had worked as Railway Advisor in the High Commission of India in Dhaka. Maitri Express from Kolkata to Dhaka was inaugurated during her tenure.
40 Railway projects worth Rs. 83,000 Crores for Telangana
The central government has decided to take up 30 Railway projects including 15 new railway lines in Telangana with a total outlay of Rs. 83,543 Crores. The announcement was made by Union tourism and culture Minister. The centre has asked the state government to speed up land acquisition for railway projects, such as for Phase 2 of Multi-modal Transport System (MMTS) in Hyderabad. The Indian Railways gave approval for modernization and redevelopment of 40 railway stations in Telangana. The Prime Minister virtually laid the foundation for 21 of them. A sum of Rs. 2,300 Crores has been released towards development of these stations.
Indian REITs Association launched
With Rs. 1,19,313 Crores in gross assets under management (AUM), a market capitalization og over 75,000 Crores, and a portfolio covering 113.5 million square feet of Grade A office and retail spaces nationwide, REITs in India have demonstrated noteworthy growth since the first REIT listed in 2019. The newly formed association will closely collaborate with SEBI, the primary REIT regulator, to advocate for both business and investor interests, while adhering to regulations. The IRA will also work with the authorities and regulators to aid policy initiatives like the SEZ reforms that will enable further growth of REITs. Among the founding members of IRA are Brookfield India Real Estate Trust (BIRET), Embassy REIT, Mindspace Business Parks, and Nexus Select Trust.
In just 4 years, REITs have raised over Rs. 25,000 Crores of equity capital through primary issuances including initial listings and follow-on offerings, and Rs. 18,890 Crores of debt capital demonstrating significant investor appetite for the asset class. As of June 2023, there are over 2,00,000 REITS unit holders to own commercial real estate in a liquid, regulated and professionally managed structure that Indian REITs provide. Globally there are 893 listed REITS with a collective equity market capitalization of approximately $1.9 Trillion.
Finland’s Superpark plans 25-30 indoor parks in India in 5 years
Finland’s Superpark operates indoor activity parks in 5 countries. It is in talks with leading mall developers in India to open its franchise. Superpark will compete with Australian family entertainment operator Timezone, Lulu Mall’s Funtura and Kidzania. All of them have aggressive expansion plans for this year. Entertainment and fun parks are considered among “footfall generators” for malls. Superpark has signed a master franchise agreement with Fran Global in India. Superpark started in 2012 in Finland and started going global in 2017. It is looking at 25,000-30,000 sq ft area in each mall.
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.