Development Watch – Week #1 March ’24

Development News

---

Unemployment rate down to 3.1%

India’s unemployment rate has declined to 3.1% in 2023 from 3.6% in previous year. Significant reason for decline is due to decrease in urban unemployment. Rural unemployment is also down by 40 bps to 2.4% from 2.8%. Global rating agency Moody’s has raised India’s growth estimate for 2023 to 7.7% from 6.7%. India recorded over 8% growth during April-December period. Despite female labour force participation rising to 41.3% in 2023 from 33.9%, unemployment only came down to 3% from 3.3% earlier.

Scheme for Installation of Rooftop Solar units

The government has amended electricity rules to exempt households from a technical feasibility study for power systems up to 10 kW capacity in a bid to encourage rooftop solar adoption. For systems of capacity higher than 10 kW, the time frame for completing the feasibility study has been reduced to 15 days from 20 days. The amendments to Electricity (Rights of Consumers) Rules, 2020, also further reduced the time allowed for getting new electricity connections and simplified the process of setting up rooftop installations. The Scheme is known as PM Surya Ghar Muft Bijli Yojana.

First under-river tunnel for Kolkata Metro

The Indian PM will inaugurate the first under-river tunnel of Kolkata Metro on March 6. The tunnel has an internal diameter of 5.55 metres while length of the river crossing is 520 metres. It will allow trains to run at 32 metres below the Hooghly river bed. It will also reduce travel time for commuters from Sector 5 to Howrah. It will make Howrah the deepest metro station in India. Currently, Green Line in Kolkata covers a small distance of 6.97 km between Sector 5 in east Kolkata and Phoolbagan. However, now this distance will be covered in mere 27 minutes. Airtel has claimed to provide uninterrupted (under-sea) connectivity to metro commuters by deploying high-capacity nodes 35 metres below river Hooghly.

Rs. 30 lakh fine for not providing wheelchair

The Directorate General of Civil Aviation (DGCA) has imposed a fine of Rs. 30 lakh on Air India for not arranging sufficient number of wheelchairs. On February 12, in an unfortunate incident where an 80-year old passenger who walked from an aircraft to airport terminal in Mumbai collapsed and died. The passenger had landed in Mumbai on an Air India flight from New York. Penalty has been imposed for violating provisions of Aircraft Rules, 1937, as per the Civil aviation regulator. The DGCA also issued an advisory to all airlines to ensure that an adequate no. of wheelchairs are available for passengers who need attendance during embarking from an aircraft.

10x expansion in domestically flagged ships

India is eyeing a significant fleet expansion of large domestically flagged ships amid disruptions to global supply chains. This sharpened the focus on international trade. The development assumes significance especially since countries withhold flagged ships when there are disputes between nations. The Shipping ministry noted that most Indian flagged vessels are engaged in coastal trade. China has a large number of flagged ships engaged in overseas trade. Concerns exist regarding India’s ageing ships. India has around 1,500 vessels registered with a gross tonnage (GT) of 13.69 million GT. More than 2/3 are engaged in coastal trade and rest are operating on overseas routes.

Indian logistics market to grow at 8.8% annually

Indian freight and logistics market is estimated to grow at 8.8% annually to $484.4 billion by 2029. This is mainly due to technological advancement, as per a report released by LogiMAT India. LogiMAT India was organized at India Expo Mart. The integration of cutting-edge technologies, and advancement in intralogistics, AI, automation, warehousing and transportation management heralds a transformative era for logistics sector in India.

Growth in Rooftop solar installations

Rooftop solar capacity addition saw 6.25% growth to 1.7 Gigawatts in 2023. This is supported by various factors like reduced installation cost, according to Mercom Capital, a US-based research firm. Residential installations led the way, while commercial and industrial consumers waited for prices to stabilize. The average cost of rooftop solar systems continued to decline. Cumulative rooftop solar installations has now reached 10.5 GW at the end of December 2023.

Rapidly falling system costs, increasing electricity rates, incentives for residential installations, and attractive return on investments for the C&I segment are all fueling demand, which is expected to accelerate in 2024. Rooftop solar tenders totaling 1.2 GW were issued in 2023, down 45.7 per cent year-on-year. Gujarat was the leader in installation, accounting for 27.3 per cent of cumulative solar rooftop installations, followed by Maharashtra and Rajasthan, with 13.3 per cent and 8.1 per cent share, respectively. The top 10 states accounted for 77.3 per cent of cumulative rooftop solar installations as of December 2023.

NHPC to set up 1,200 MW solar park in UP

National Hydroelectric Power Corporation (NHPC) will complete the proposed 1,200 MW solar power project entailing an investment of Rs. 796.96 Crores in UP by 2026. The Jalaun Ultra Renewable Energy Power Park at Orai in Jalaun district of UP will be developed by NHPC subsidiary, Bundelkhand Saur Urja Ltd. at an investment of Rs. 796 Crores. The park will generate about 2,400 MUs (million units) of electricity every year. NHPC, under the Ministry of Power, is the largest hydropower development organization in India. It has capabilities to undertake all activities from conceptualization to commissioning of hydro projects. It has also diversified into solar and wind energy development.

---