Development Watch – Week #2 February ’24
Development News
DPR Threshold hiked to Rs. 5 lakhs/km
The government plans to introduce a threshold of Rs. 5 lakh per km for awarding detailed project report (DPR) contracts to road consultants. This is against the existing average of Rs. 1 lakh per km. This is a move from least cost to fixed cost model. It will improve the quality of DPRs to bring them at par with international standards and avoiding project delays. This would also help to bring down time and cost overrun to come down substantially. The base price has been arrived at after taking into consideration global norms on salaries of good quality human resources and related factors. The need for a minimum base price, below which contracts will not be awarded, has arisen as bidders quote bare minimum price to get the contract, but eventually make poor quality DPRs. The benefits of quality DPRs and the saving made thereof will outweigh the additional cost burden.
SOPs for approving new ports for controlled growth in maritime sector
India is preparing strict Standard Operating Procedures (SOPs) for approving new ports and ensuring a regulated growth of the maritime sector. Full capacity utilization at existing ports will be prioritized before approving new ones. These SOPs aim to ensure structured growth of Indian ports and safeguard investments made in setting them up. India presently has 226 registered ports of which only 78 are operational. Among those functional, 40 are handling only passenger traffic and are mostly in the Andaman & Nicobar (A&N) and Lakshadweep Islands. New SOPs mandate any new ports to be part of existing master plans of Center or state governments. Even new terminals in existing ports should be part of master plans.
Jewar airport to be ready by 2024
According to the Civil Aviation Minister, the international airport at Jewar, Noida, will be ready for operations by the end of 2024. India is now the 5th largest aviation market in the world with regards to both domestic and international passengers and by 2030 it will become the 3rd largest market in the world. It is coming up in the the Jewar area of Gautam Buddh Nagar district adjoining Delhi. It is expected to serve 65 lakh passengers (per year) initially, according to an estimate. Earlier UP had 6 airports. After the current came to power, 4 more airports have been built, while 5 more airports will be ready soon. By end of 2024, UP will have 16 airports.
HUDCO in talks for Rs. 30,000 Crores funding in Maharashtra
The Housing and Urban Development Corporation Ltd. (HUDCO) is in talks with Maharashtra Government to support infrastructure and housing projects in the state with a funding of Rs. 30,000 Crores. HUDCO is also in talks with development agencies involved in developing roads, infrastructure, and housing projects in the state to support several projects. HUDCO, a PSU, engaged in housing finance and infrastructure project finance is in talks with development bodies including Mumbai Metropolitan Region Development Authority (MMRDA), Maharashtra State Road Development Corporation (MSRDC), Thane Municipal Corporation, state government’s Public Works Department (PWD) and Mumbai Metro Rail Corporation.
2030: renewables to fulfill 65% of India’s energy needs
About 44% of India’s energy requirements come from non-fossil sources and are likely to touch as high as 65% by 2030. This is much higher than what the country has pledged at the COP summit in 2021. At COP26 held in Glasgow, India committed to an ambitious 5-part “Panchamrit” pledge. They included reaching 500 GW of non-fossil electricity capacity. This generates half of all energy requirements from renewables. it all reduces emissions by 1 billion tonnes by 2030. India as a whole also aims to reduce the emissions intensity of GDP by 45%. 103,000 Megawatts of renewable capacity is under construction in India. 71,000 megawatts is under bid.
Rs. 75,000 Crores investment for rooftop solar scheme
PM Narendra Modi on Tuesday said PM Surya Ghar Muft Bijli Yojana will see an investment of Rs. 75,000 Crores. The Scheme, first announced on January 22, 2024, aims to light up 1 Crore households by enabling them for free electricity of up to 300 units every month. It will involve substantial subsidies and concessional bank loans. The government will also integrate stakeholders into a National Online Portal for convenience.
Is there a deepening Rural distress in India?
There is apparently a flawed narrative of deepening rural distress doing the rounds. It weaponizes concocted data about lower growth in wages in real terms for agricultural and non-agricultural labourers during FY15-FY23 (till November) vis-a-vis FY05-FY14. At present, macroeconomic stability is a far better, prudent and level-headed option than a regime marked with inflation surge. While Gini coefficient declined from 0.496 in FY 20 to 0.483 in FY23 for men and women in Rural India, it declined from 0.490 in FY20 to 0.469 in FY-23 using Periodic Labour Force Survey (PLFS) data.
Delhi-Meerut RRTS to be operational by 2024 end
The Regional Rapid Transit System (RRTS) connecting Delhi and Meerut will commence operations by end of 2024. The RRTS will cover the stretch from Jangpura in Delhi to Meerut South, with stops at Sarai Kale Khan, New Ashok Nagar, Anand Vihar, Sahibabad, Ghaziabad, Guldhar, Duhai, Murad Nagar, Modi Nagar South, and Modi Nagar North. 17km section from Sahibabad to Duhai Depot has been operational since October last year.
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.