Development Watch – Week #3 March ’24
Development News
New population census and economic data improvements
Indian government is planning a number of steps to improve the quality of its economic data, including kicking off a long delayed population census. The Ministry of Statistics has made a number of proposals to the PMO in the past month. These include reviving the survey of businesses (last released in 2014), and publishing the household consumption survey on an annual basis. A uniform base year would be introduced for key indicators and update the basket of goods for calculating inflation. The government is also considering a new population census after elections. The last decadal census was delayed due to the Pandemic, with the last one being done in 2011. Relying on outdated surveys also raises risk of policy errors. The census would include training and deploying more than 300,000 government staff to enumerate citizens in the world’s most populous nation. The exercise would likely last 12 months.
Shapoorji sells data centre stake worth Rs. 700 Cr
Sterling and Wilson, an engineering, procurement and construction company of Shapoorji Pallonji Group, will raise Rs. 700 Crores from a group of strategic investors through a stake sale in its data centre business. The data-centre division is a 100% business unit of SWPL and is debt-free. Due to cloud, AI (Artificial intelligence)and digital penetration in the country, the data centre segment could see a CAGR of over 30%. The company will hive off the data centre business created in 2015 as a separate entity. Over the last 8 years, SWPL has built 24 data centres globally, totaling 63 MW of capacity.
Delhi Solar Policy 2023 by the State Government
The State government of Delhi has notified Delhi Solar Policy 2023 that will help consumers with monthly use of over 400 units to get zero bills through rooftop solar plants. The consumers who do not get subsidy for using more than 400 units per month can now install rooftop solar panels and get zero bills. The power bills of commercial users will be halved if they go for rooftop plants. Currently, domestic consumers receive zero bills up to 200 units monthly consumption. 50% subsidy is given for 201-400 units. The Delhi Government will spend Rs. 570 Crores towards implementation of the policy. It provides for generation-based incentives to solar panel installers, allowing for additional earnings of up to Rs. 900 per month. Expenses for installing solar panels under new policy will be recovered within 4 years.
FLY91 a new airline that begins operations
FLY91 is India’s newest airline. It launched commercial services with an inaugural flight from Goa to Bengaluru. The airline is initially flying between Goa, Hyderabad, Bengaluru and Sindhudurg. They will later add flights to Agatti in Lakshadweep, Jalgaon and Pune in April. They’ll operate flights between Goa and Bengaluru on Monday, Friday and Saturday. The regional carrier plans to connect Tier 2 and Tier 3 towns under the government’s UDAN scheme. India is currently the world’s 3rd largest aviation market. The airline has introduced a special fare of Rs. 1,991 (all inclusive).
10 new waterways in Assam worth Rs. 645 Cr
The Union Ministry of Ports, Shipping & Waterways would invest more than Rs. 645 Crores to develop 10 waterways projects under the flagship Sagarmala Programme of the Ministry of Ports, Shipping & Waterways. Projects include construction of slipways at strategic locations such as Maya Ghat in Dhubri district and Majuli district, establishment of passenger terminals at Ghagor in North Lakhimpur district and Bahari in Barpeta district, among others. Each proposal is meticulously designed to enhance connectivity and facilitate seamless transportation across the region.
Railways to register best-ever freight business
The Indian Railways is on track to register best-ever performance in terms of freight loading, overall revenue collection and track laying in financial year in 2023-24. The Indian Railways has crossed an originating freight loading of 1,500 MT on 15th March 2024. During FY 2023-24, total revenue of Indian Railways stands at Rs. 2.40 lakh crores. This is an increment of Rs. 17,000 Crores since last year. The Railways has also laid 5,100 km of new tracks. The average daily track laid comes out to be more than 14 km.
India to have 50 WTCs in 7 years
The World Trade Centre is looking to expand its presence in India. The Indian market in India is witnessing stable growth amidst global uncertainties. WTCA’s strategic expansion in India is driven by quality reputation and economic growth. This would position the WTC brand for further success. The global office market also faces a shift post-pandemic, with varying impacts across regions as companies navigate remote work trends. The success of a trade center is largely dependent on the team managing it. The city’s name is not as crucial as the team’s ability to attract new business and gain their trust. There can be over 50 WTCs in the next 5 to 7 years in India, up from the current 40. There is a high demand for 1st class, green and sustainable smart buildings.
Infra-asset tokenization platform in GIFT City
India’s first regulated real estate and infrastructure asset tokenization platform is likely to be set up at Gujarat International Finance Tec-City (GIFT City). It aims to provide fractional ownership opportunities to small investors using blockchain technology. With the help of blockchain technology, the platform will seek to unlock investments in the sector by allowing small investors to have fractional ownership in real estate and infrastructure project. They use asset tokens while providing liquidity to global asset owners. The International Financial Services Centres Authority (IFSCA) headquartered in GIFT City is tasked with regulating and developing international financial services centres in India. Few entities have received conditional approval to start a platform. One of these entities is Realdom India Pvt. Ltd. registered with Startup India and is a member of Nasscom’s T-AIM initiative. It is in the regulatory innovation process, called Sandbox, and will set up its platform known as Pinvest Exchange.
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.