Development Watch – Week #5 November ’23
Development News
New President for Rural Marketing Association
Rural Marketing Association of India (RMAI), the premier body of rural marketers, has appointed Puneet Vidyarthi as its President for 2023-25. Presently Mr. Vidyarthi is head of marketing, business development at CASE New Holland, a construction equipment business. Over the past decade, sales of branded daily needs in India have increasingly relied on rural hinterlands. Rural India is home to more than 800 million people whose purchase behaviour is largely linked to farm output. From rural demand growing at twice the pace of that from cities, all in 2019, growth in villages has now fallen behind cities in the last 3 years. Companies expect this should reverse for the overall market to expand.
Solar capacity installations in India fall by 47%
India has seen a 47% decline in solar installations, reporting 5.6 GW from January to September 2023. This is mainly due to delays in project execution. According to research firm Mercom India, there has been 34% YoY decrease in installations for July-September quarter. This time period had 1.9 GW compared to previous 2.8 GW. However, on a QoQ basis, installations have increased by 6%. Challenges included extensions to solar projects, oversupply of modules in China that has affected prices, and uncertainties in transmission connectivity procedures.
E-buses to account for 11-13% sales by 2025
Electric buses (e-buses) are expected to account for 11-13% of new bus sales by FY 25. This is according to a report by credit rating agency ICRA. E-bus volumes and penetration levels have improved consistently to 7% in FY ’23. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) plan has been steady progress towards achieving e-bus deployment targets. There are capital subsidies of Rs. 35-55 lakh per bus, potentially funding up to 40% of the project costs. Compared to conventional CNG or diesel buses, these subsidies help lower the total cost of ownership of e-buses by 10-25%, when coupled with significant saving on fuel costs, which is 3-5 times cheaper than conventional buses.
German and Japanese companies to deploy Kavach on Indian Railways
India’s ability to deploy automatic train collision avoidance systems – Kavach – will get a boost with global companies getting approvals to install it on Indian Railways trains. Germany’s Siemens and Japan’s Kyosan are the two new approved Kavach deployment companies. Tenders to install over 300 kms were awarded in December 2022. Progress is as per schedule with 98% Radio survey on the routes have been completed till now. According to Railway Minister, bids to install Kavach on another 2,500 kms of railway networks will soon be awarded. THe next generation of Kavach is based on Long-term Evolution (LTE), popularly cited as 4G and 5G technology. Two tenders will be awarded next year.
Delhi airport to use predictive analytics to improve operations
The DElhi airport will be using predictive analytics based on AI as well as camera based solutions to improve operations at the airport. The airport is witnessing rising passenger traffic. It handles around 1,300-1,500 flights daily and expects to have more than 70 million passenger traffic in the current fiscal ending March 2024. Currently it has 3 terminals. Solutions are being explored which are more IoT based. AI based solutions will be using predictive analytics for improved operations. Measures including increasing entry points, were taken within 15 days of congestion that happened last year. DIAL is also upgrading to system of APOC (Airports Operations Center), which is already used by some European airports, and is based on predictive analytics.
Need for strengthening port infrastructure
India’s President Droupadi Murmu said there is a need to further strengthen the infrastructure of ports in India and increase their efficiency. Speaking at the “Boita Bandana” boat worship ceremony in Odisha, she praised the government’s Sagarmala programme for improving port activities and emphasized the importance of maritime trade in the country’s trade and economic development. It was organized by the Paradip Port Authority. Boita BAndana is an annual festival observed in Odisha, remembering the ancient maritime glory of the state, which was earlier known as Kalinga.
MHADA to implement GIS-based property mapping from 2024
The Maharashtra Housing and Area Development Authority (MHADA) is set to implement the final phase of work related to GIS (Geographical Information System) based asset and inventory management system that will help in managing the housing body’s land and properties. According to the MHADA VP and CEO, this system, based on GIS, would prove to be a boon for the future housing development projects and land management sectors of MHADA. This system will also provide immediate access to information regarding the housing body’s current land holdings, potential development on land, encroachments, reservations, and available vacant lands, empowering efficient land management.
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.