Development Watch – Week #5 January ’24
Development News
Uphill battle for Lithium mining and exploration
Attracting foreign companies with Lithium mining and processing expertise to invest in India will be crucial to accelerate the domestic lithium exploration and mining activities. China currently dominates 65% of lithium processing/refining industry. India has recently made a Rs. 200 Crores investment in lithium exploration in Argentina, by the Ministry of Mines.
How “Bharat” is making its presence felt
Businesses are increasingly looking beyond metros for growth as well as new opportunities. Article 1 of the Indian Constitution emphasizes the Union of India as “India that is Bharat”. Despite a controversy sparked by a G20 dinner invite, legal experts noted that both India and Bharat can be used interchangeably. However, in terms of the economy, India and Bharat exhibited some distinctions, but that is now changing. Rising income levels, better and more educational opportunities, roads and highways that connect to big cities, and better civic amenities have led to the rise of Bharat.
Data collection for Mumbai slum redevelopment project
A firm led by Adani will start to collect the data and biometrics of up to 1 million poor residents as part of the redevelopment of Dharavi slum in Mumbai. The survey will be crucial in deciding who among the residents of the Dharavi slum will be eligible to receive a free home in the area that is being redeveloped. However, authorities have struggled for decades to fix up the area, which covers 640 acres (260 hectares). Adani Group has finally won the bid to redevelop the area together with the state of Maharashtra. However, legal disputes over the award of the contract are outstanding.
NBCC to develop mixed-use project in Kerala
The Kerala State Government has approved the development of an 18-acres land parcel at Marine Drive, Kochi, by the Kerala State Housing Board. The Rs. 200 Crores project will involve phased development of a mixed-use commercial and residential complex on a self-sustainable model. NBCC in collaboration with Kerala State Housing Board (KSHB) will execute the project. It will include the construction of a commercial/office facility, residential complex and a 2500 pax convention center.
Railways see highest capex utilization and employment
Indian railways has achieved a remarkable 75% capital expenditure (capex) utilization during 1st nine months of current fiscal year (April 1, 2023 – December 31, 2023). The Railways invested Rs. 195,930 Crores, constituting approximately 75% of the total capex budget of Rs. 2.62 lakh crores allocated for the financial year. Compared to the corresponding period in the previous year, there has been a notable 33% increase in capex utilization. The Indian Railways also plans to create more employment opportunities by conducting an annual recruitment process. The Union Railway Minister stated that the employment process for 1.5 Lakh posts has been completed. The selection of Assistant Loka Pilots (ALPs) being the first step. The Railway aims to fill vacancies on a yearly basis in various categories, providing more opportunities for applicants. There will be more opportunities in technical and non-technical popular categories of Group D.
Connecting India’s logistical dots through Budget 2024
India’s growing economy requires strategic allocations for its logistics sector. This includes the development of multi-modal terminals and increasing the rail share. Adoption of bi-modal technologies and zero emission trucks can help reduce emissions, and lower operating costs. The focus should also be on improving logistics technology, such as digitizing customs clearance processes. Road and rail connectivity remains the bedrock of seamless logistics services. Development of large-scale multimodal terminals needs to be at pace, so as to cover 12 biggest freight markets in India within next 2 years. India will have large multimodal facilities (spanning >200 acres) operational in less than 5 locations by 2026. Adoption of Eastern and Western Dedicated Freight Corridors (DFC) would play a key role.
59 minutes long 1-way commute to work
An average Indian spends 59 minutes to commute one way to work in 2023. Indian employees spend more time commuting due to hybrid work arrangements, with increased distance and traffic. Average commute time increased to 59 minutes for 20 kms. Employees also spend 15% more time on the road. Compared to pre-covid times, travel distance increased by 17.6%. Companies are adapting work and commute arrangements as some offer nodal services or shift-based models. Commute time is a challenge and there is a resistance to 100% work from office. Wednesdays are the most preferred office day, while Mondays are least preferred.
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.