Development Watch – Week #3 January ’24
Development News
$500 million loan for solar manufacturing in TN
the US International Development finance Corporation (DFC) is providing a $500 million loan to support the establishment of First Solar’s new manufacturing facility in Tamil Nadu. It will help diversify the supply chain in a critical sector and drive economic growth in India. the US is leveraging American innovation and technology to diversify critical energy supply chains around the world and drive economic growth in India. First Solar’s facility in TN is the first fully integrated solar manufacturing plant in India. It has an annual nameplate capacity of 3.3 GW and directly employs 1,000 people. It will also produce First Solar’s Series 7 PV solar modules, developed in the US R&D centre but optimized for Indian market.
17 Lakh Crores Investment in Power and RE sector since 2014
An investment of Rs. 17.05 lakh crores is in the pipeline in the power and RE sector. It has attracted around 17 lakh crores of investment since 2014. As much as 80 GW of thermal power generation capacity is under construction by 2030. Within the ambit of new rules called Electricity (Amendment) Rules 2024, as much as 17 lakh crores has been invested in power and renewable energy sectors so far. This includes 11 lakh Crores in sectors like generation, distribution and transmission while ~6 lakh crores in RE sector. India’s power generation capacity will increase to 800 GW from 428 GW at present.
Atal Setu Trans Harbour link to transform Mumbai
It is India’s longest bridge that connects South Mumbai with the Mainland across the Arabian Sea. This would give a boost to business and industry. The Mumbai Trans Harbour Link (MHTL) or Atal Setu links Sewri in Mumbai to Nhava-Sheva on the mainland in Mumbai Metropolitan Region. It spans 22 km with a 16.5 extension into the sea. It shortens travel time between Mumbai and Navi Mumbai to 20 minutes from 2 hours. Mumbai is home to 23.6 million people would complete $10 billion in projects over 18 months and an additional $60 billion over next 3-7 years.
Engineering goods sector to grow 10.20%
India’s engineering goods exports has recorded a YoY growth of 10% to $ 10 billion in December 2023. However, the sector still faces uncertainties due to prevailing economic conditions, as per the Engineering Export Promotion Council of India (EEPC). Projections indicate a potential slowdown in global growth in 2024 and factors such as a high interest rates and low consumer spending. EEPC maintains a cautious optimism and hopes for improvements in the global macroeconomic situation. Entering into more Free Trade Agreements (FTAs), especially with countries in Latin America and Africa would provide exporters with deeper access to new and emerginng markets.
L&T bags an order for bullet train project
The construction arm of L&T has bagged a mega-order to set up an electrification system for the bullet train project. The order has come from an authorized Japanese agency. The order has been awarded to the railways strategic business group of L&T Construction. Scope of work includes construction of 508 km of high-speed electrification system works for Mumbai-Ahmedabad High-Speed Rail (MAHSR) Project, or the bullet train project. this electrification system will enable trains to travel at speeds of 320 km per hour. The project is being funded by Japan International Cooperation Agency (JICA) and is being implemented by an authorized Japanese agency acting for, and on behalf of National High Speed Rail Corporation Ltd. The contract value may be between Rs. 10,000-15,000 Crores.
Navi Mumbai Airport to be operational by 2025
Commercial operations of Navi Mumbai International Airport will commence by March 2025, according to Union Civil Aviation Minister. The airport project is being developed by Adani Group, and is split into 5 phases. It will have a total capacity of 9 Crore passengers per annum. As much as 55-60% of the work on the project has been completed. A total investment of Rs. 18,000 Crores. After completion of 5 phases of the project, the airport will have 4 terminals and two runways. It will also have connectivity through metro, rail, roads and waterways.
Proposed establishment of Indian Maritime Centre
Ministry of Ports, Shipping and Waterways has constituted a high-level task force to oversee the establishment of the Indian Maritime Centre (IMC) to build global credibility for the Maritime sector. The objective of the task force is to provide policy direction for the formation of IMC for smooth and sustainable operationalization, as per an office memorandum by the Ministry. Funding and secretariat support of setting up of IMC will be provided by Indian Ports Association (IPA). IMC Secretariat will be built as a world-class facility.
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.