Development Watch – Week #4 November ’23
Development News
Risk of Recession in 2024
Uncertainties are linked to higher food and energy prices that persist amid geopolitical tensions. Consequently, India’s Finance Ministry has said a recession may appear in 2024 due to rise in prices. India’s trade deficit reached a record high in October due to higher value imports and lower exports. Rural demand has sustained momentum in the second quarter. This is driven by stable foodgrain production incomes and moderate inflation. Global trade numbers are also expected to be under pressure, owing to a declining world merchandise trade volume. Higher value imports and lower exports have also taken trade deficit to a record high. On the rural demand front, there has been sequential momentum in Q2 of FY ’24. Incomes from foodgrain production have been stable and inflationary pressures are moderate.
India to be 2nd largest solar module producer by 2025
India is set to emerge as 2nd largest producer of solar modules by 2025. This surpasses SE Asia, and is expected to cater mainly to US demand. A report by Wood Mackenzie indicates that even as India plans to boost its module exports to the profitable US market, it grapples with high production costs. This is mainly due to 25% basic customs duty on imported solar cells. There is also speculation to support export ambitions. The Indian government may also lower the duty on Chinese modules, which currently incur 40% tax. The US, under its Inflation Reduction Act, is also developingits own photovoltaic manufacturing capabilities.
New inter-state transmission project in Karnataka
ReNew Power on Thursday has announced its first interstate transmission project in Karnataka’s Koppal. The Koppal project was awarded in FY ’22. It includes construction of a new 400/220 kV sub-station along with 276 circuit km of 400 kV transmission line. The line will help in transmission of 1,500 MW of renewable energy. The rest of the capacity of the Koppal Transmission Scheme of 3,500 MW is expected to be completed by June 2024. ReNew Power has also signed an agreement on 2nd joint investment in the transmission sector with Norfund, and with the Norwegian Government’s Investment Fund for developing countries.
Dedicated Freight Corridors to boost India’s economy
DFCs will help India reduce high logistics costs from 13-15% of GDP and help it move towards the target of 8% by bringing them more in line with global standards. In addition, each kilometer-long freight train on Eastern DFC (EDFC) will replace 72 trucks on average. This would also ease congestion on India’s overcrowded roads and highways, which carry 60% of the country’s freight.
Railways to introduce 3,000 new trains in 5 years
the Railway Ministry is working on plans to introduce 3,000 new trains in the next 4 years-5 years to raise the railway’s passenger capacity from 800 Crores to 1,000 Crores. The railways can add 200 to 250 new trains every year, besides the 400-450 Vande Bharat trains which will be added in coming years. Decreasing travel time is another target, for which, the railways is working to improve speed of trains, and expand the rail network. Every year around 5,000 km of tracks are laid to further enhance capacity. Last year, the railways also constructed 1,002 flyovers and underpasses.
India’s maiden A350 aircraft to join Air India fleet
Air India operated its first ferry flight of its A350-900 aircrafts having new livery. The flight was from Singapore to Toulouse. Total 40 airbus A350 on order (6 A350-900s and 34 350-1000s) First A350 is expected in December 2023. The remainder (5) A350-900
NHAI announces to undertake safety audit of 29 under-construction tunnels
The NHAI will undertake a safety audit of all 29 under construction tunnels across India. . Of these tunnels, 12 are in Himachal Pradesh, 6 in Jammu & KAshmir, 2 in Maharashtra, Odisha and Rajasthan, and 1 in each of the states like MP, Karnataka, Chhattisgarh, Uttarakhand, and Delhi. The move has been triggered by the recent Silkyara tunnel incident in which 41 workers were trapped on November 12. It is located 30 km from district HQ of Uttarkashi, and a 7-hour drive from Uttarakhand capital Dehradun. It is part of ambitious Char-Dham all-weather road project of the central government.
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.