Development Watch – Week #2 January ’24

Development News

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6,000 km of EV-ready Golden Quadrilateral Highways

The government is working on a plan to build electric vehicle-ready highways on the Golden Quadrilateral in a major effort to reduce fuel consumption and vehicular emissions through electrification of intercity public transport. Electric highways are an energy-efficient option where the roadways provides electricity to moving vehicles mostly through overhead power lines. The programme is being envisaged as part of the proposed Vision 2030: PM Public Transport Sewa. The government has initiated talks to replace 800,000 old, polluting diesel buses with electric ones by 2030. This includes 200,000 electric buses for state transport undertakings. These would be 550,000 for private operators and 50,000 for schools and employee transportation.

8,000 Cr investment renewable energy investment in Gujarat

Juniper Green Energy has inked an initial pact and MoU with Gujarat government to develop 1 GW of wind and solar project entailing investment of Rs. 8,000 Crores. The company is a leading player in RE sector and is investing mainly in wind and solar projects. The MoU was signed during the Investment Promotion Activity for Vibrant Gujarat Summit 2024. There would be proposed job prospects of 1,500.

In another development, Delhi-Surat stretch of Delhi-Mumbai expressway is anticipated to be ready for travel in few months. This will reduce the distance between Delhi and Mumbai by 12%. The completion of entire expressway is expected by December 2024. The project will benefit 93 PM Gati Shakti economic nodes, 13 ports, 8 major airports and 8 multi-modal logistics parks. The expressway traverses 6 states such as Delhi, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra. This would connect urban centres such as Kota, Indore, Jaipur, Bhopal, Vadodara and Surat.

Rural demand to gain impetus in 2024

Rural demand is likely to pick up pace in 2024, owing to moderation in inflation, replenishment of rural savings after the Covid pandemic, increased liquidity on the back of pre-election spending and likely a stable regime. Even though growth is expected to slow down in the coming fiscal from 6.7% projected in FY24, mass consumption may rise as easing price pressures support mass consumption. Addition liquidity is also driven by pre-election spending. According to Nomura, a global investment banking firm, growth is expected to slow down to 5.6%. Inflation is also expected to moderate to 4.5% in FY25. Rural wages running higher than rural inflation are also to play a role in supporting consumption.

MoU with USAID & Railways for net-zero carbon emission

The Union Cabinet chaired by the PM has approved an MoU signed between United States Agency for International Development (USAID) (India) and Indian Railways to help the latter achieve net zero emission by 2030. The MoU facilitates utility modernization, advanced energy solutions and systems, regional energy and market integration and private sector participation. This would also lead to training and seminars/workshops focusing on specific technology areas like renewable energy, energy efficiency and other interactions for knowledge sharing. Earlier, the Indian Railways has worked with USAID for the deployment of rooftop solar systems across Railway platforms. They will also work jointly for long-term energy planning, including clean energy for the railways.

Mega projects in Gujarat for RE

Gujarat’s progress is being fueled by mega projects like Mumbai-Ahmedabad bullet train, Dholera Solar Park and the Hybrid Renewable Energy Park in Kutch. The state is making efforts to attract development projects and investments are set to get a boost further through 10th Gujarat Vibrant Global Summit (January 10-12). Mumbai-Ahmedabad bullet train is 508 km is a high-speed rail project worth Rs. 2 lakh crores spread over Maharashtra, Gujarat and Dadra and Nagar Haveli Union Territory. It is set for completion in August 2026. The rapid 2+ hours option would operate at 320 km/hr and carry 17,900 passengers daily in each direction.

The Dholera solar park is located 80 km from Ahmedabad and is India’s largest solar project. It has a capacity of 5,000 MW. It is nestled within Dholera Special Investment Region (SIR) and has a size of 11,000 hectares. The Dholera Solar Park is divided into 11 blocks. Each block utilizes cutting edge poly-crystalline silicon solar PV module technology. Dholera SIR is also India’s largest greenfield industrial investment region, and India’s first greenfield industrial smart city to receive a platinum rating by Indian Green Building Council.

The Gujarat Hybrid Renewable Energy Park located near India-Pakistan border, is poised to transform India’s energy landscape with an investment of Rs. 1.5 lakh crores. It spans from Khavda to Vighakot villages in Kutch district. It integrates solar panels and wind turbines to yield 30 Giga Watts of sustainable power. This park has wind energy as well as solar. Both have combined production capacity of 30,000 MW.

Housing demand to reach 93 millions by 2036

Housing demand in India is projected to reach 93 million units by 2036 with several Tier 2 cities and Tier 3 cities projected to spearhead both demand and supply. This is according to a report by the Confederation of Real Estate Developers’ Association of India (CREDAI) and Liases Foras. The surge is mainly due to the increase in housing demand basis growth in key parameters including population in both urban and rural areas, healthy macro-economic indicators and favorable demographics. Several Tier 2 and 3 Cities are projected to spearhead both demand and supply. With government plans to establish smart cities, along with increasing commercialization activities in emerging areas, it is widely expected that next wave of real estate growth will stem from Tier 2, 3 regions. India is set to develop manifold in next 10-15 years.

Airfield planned for Minicoy Islands in Lakshadweep

India is looking to promote the Lakshadweep Islands for tourism. There are plans to develop a new airfield at Minicoy Islands that would be capable of operating military aircrafts, including fighter jets, along with commercial flights. The joint-use defense airfield would give India a strong military capability and allow it to monitor the Arabian Sea and Indian Ocean region. The Indian Coast Guard was the first to suggest the development of an airstrip in the Minicoy Islands. Presently there is only one airstrip in Agatti.

Rs. 45,000 Crores Inland Waterway Development Plan

An investment of Rs. 45,000 Crores for the development of inland waterways and river cruise tourism in the country has been promised by the Inland Waterways Development Council (IWDC). IWDC is the apex advisory body for the development of inland waterways sector in India. Rs. 35,000 Crores have been earmarked for cruise vessels. another Rs. 10,000 Crores are for the development of cruise terminal infrastructure by 2047. These measures are expected to result in a 4x growth of cargo volume (up to 500 million tonnes per annum – TPA) by 2047.

The IWDC has representation from NE states such as Meghalaya, Manipur, Mizoram, Assam, Tripura and Nagaland, when deciding the course of waterways development in the country. States with large river systems like Uttar Pradesh and Bihar in north India are also represented. IWDC also operates the Maritime State Development Council (MSDC) which focuses on development of ports and coastal areas. Number of cruise terminals will be increased to 185 form 15 presently. Local cruise tourism traffic on National Waterways (without night stay) will be increased from 2 lakh to 15 lakh by 2047.

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