Development Watch – Week #4 March ’24
Development News
Roadblocks in Renewable Energy projects
Headwinds from post-pandemic global economy, including high interest rates and inflation, are holding back costly investments in wind, solar and other forms of clean power. Hurdles also include higher borrowing costs, high prices and clogged supply chains for wind turbines and blades. In countries like Germany, money from selling electricity is generated by wind turbines in the flat green fields stretching up till North Sea. Villagers also receive money for generating power through wind energy. However, this is slowing the growth needed to fend off climate change. Clean energy capacity also needs a boost. Dividends from citizen-owned wind wind parks don’t make the villagers rich but only supplement their income. The value of this income is over 400,000 Euros in taxes. This can help sponsor local infrastructure like playground, bike paths, and activities for children. This helps overcome “Not in my Backyard” resistance to wind farms.
WCopEF to create 500 rural cooperatives in universities
World Cooperation Economic Forum (WCopEF), along with National Cooperative Union of India (NCUI) and Confederation of NGOs of Rural India (CNRI), will work to establish and promote “Campus Cooperative” across various universities in the country. The pilot “Campus Cooperative” will be set up at JNU in Delhi. Campus Cooperatives would help to attract talented youths to the cooperative sector. They can also play a role in fulfilling requirements of students for various products, including food items. The cooperatives can provide an opportunity for students to learn the skills of businesses as well as leadership. It will provide direct access to farmers by eliminating middlemen.
Facts about India’s longest road (NH-44)
NH-44 or the old NH-7/NH-1 is the longest national highway in India. It stretches for 3,745 km, connecting Srinagar in northern tip of J&K to Kanyakumari at the southernmost point of India. NH-44 traverses 11 Indian states. It passes through J&K, Punjab, Haryana, Delhi, Uttar Pradesh, Madhya Pradesh, Maharashtra, Telangana, Andhra Pradesh, Karnataka and Tamil Nadu. It passes through significant cities like Agra, Delhi, Hyderabad, and Bangalore. NH-44 serves as a major artery for transport of goods, connecting agricultural centers, industrial hubs, and major ports. It is an amalgamation of 7 previously existing national highways. Globally, NH-44 is ranked 22nd longest national highway.
SP group announced sale of Gopalpur port in Odisha
Shapoorji Pallonji group announced the sale of the brownfield Gopalpur port to Adani Port and SEZ Ltd. The enterprise value is Rs. 3,350 Crores. This is the second port divestment in recent months by construction and infrastructural conglomerate. Earlier, SP Group carried out the sale of Dharamtar Port to JSW Infrastructure Ltd. The value of the sale was Rs. 710 Crores. Deutsche Bank had advised the SP Group on the deal. The company has been deleveraging through planned asset monetization.
India’s longest train journey from Dibrugarh to Kanyakumari
The Vivek Express, named after Swami Vivekananda, takes 75 hours and 35 minutes to complete the journey. The length of this journey is 4,218.6 km. The train offers a choice of classes, including AC cabins, sleeper coaches, and general seating. This caters to diverse budgets and preferences, showcasing landscapes, cultures and cuisines.
Flexible workspace market to reach 126 million sq ft
The flexible workspace market in India is dominated by product-led operators offering flexible office solutions across the spectrum. Sectors such as IT and ITeS, banking, financial services and insurance (BFSI), consulting, e-commerce, manufacturing, and emerging startups, alongside the steady influx of global captive centers (GCCs), are driving this demand. The sector would grow up to 126 million sq ft at a compounded annual growth rate (CAGR) of 15%. This amounts to a $9 billion market by 2028. Several classes of investors show interest in this sector, including, HNIs, PE, growth capital, venture debt and structured debt, and family offices. A flexible workspace operator can provide 15-20% reduction in costs in comparison to traditional leasing methods.
India’s Data Center capacity to double in 3 years
India’s data center industry is set to double capacity with substantial investments. High mobile data usage, rising cost per MW are factors leading to growth. New players are expected to enter this domain. There are exciting times ahead for the sector as capacity would double from 0.9 Gigawatts in 2023 to nearly 2 Gigawatts in 2026. Additional capacity built up has created substantial investments prospects due to estimated capex requirement of Rs. 50,000 Crores. India’s share of global data center capacity share is only 3% despite generating 20% of global data.
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.