Development Watch – Week #1 April ’24

Development News

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Ministry of Road Transport raises 40,314 Crores

Ministry of Road Transport and Highways (MoRTH) has raised Rs. 40,314 Croers through various modes of asset monetization in FY 2023-24. It exceeded the target of raising Rs. 28,968 Crores. The funds were raised through monetization of 4 Toll-Operate-Transfer (ToT) bundles (Rs. 15,968 Cr), Infrastructure Investment Trusts (InvIT) (Rs. 15,700 Crores) and Rs. 8,646 Crores through securitization. In 2022-23 the Ministry had raised Rs. 32,855 Crores through various modes of asset monetization. Project-based financing is also a common mode for monetizing assets. InvIT is an instrument on the pattern of mutual funds, designed to pool money from investors and invest in assets that provide cash flows over a period of time.

Paradip port largest Indian cargo port

Paradip in Odisha has become India’s largest major port in terms of cargo volumes, handling 145.38 million tonnes in FY ’24. This surpasses Deendayal Port Authority in Gujarat for the first time in its 56-year history. The port achieved record coastal shipping traffic and thermal coal shipping, driven by improved operational efficiency. The port achieved the highest ever coastal shipping traffic of 59.19 million metric tonnes, with a growth of 0.76 million metric tonnes. Growth trajectory of Paradip Port was driven by an improved system of operation at a mechanized coal hand to reduce idle time between rake unloading. This resulted in highest handling of thermal coal, which is equivalent to 27.12 million tonnes.

Domestic air traffic to touch 153.4 million

In 2023-24, Mumbai expects 153.4 million domestic passengers, with international traffic of 70m. According to aviation consultancy CAPA India, domestic aviation market shows rapid growth. For international traffic, the consultancy has pegged the figure at 70 million in October 2023. This is lower than 72-74 million estimate made in March 2023.

Highest loading on Railways during 2023-24

During the financial year 2023-24, the Indian Railways achieved a record-high freight loading of 1,591 million tonnes. This is up from 1,512 metric tonnes in the previous fiscal year. This represents a significant milestone, with an incremental loading of 79 MT. Records of railway electrification, new lines, and track replacement were also made during the year under review. The Indian Railways electrified 7,188 route kilometres, laid new lines at 14.5 km per day and replaced 5,950 km of tracks. Within goods loading, the Railways ferried 787.61 MT of coal, 180 MT of Iron ore, 150 MT of cement, and 114 MT as Balance Other Goods.

21 GW of solar module manufacturing capacity added

India installed 20.8 GW of solar modules and 3.2 GW of cell manufacturing capacity in 2023. Cumulative manufacturing capacity reached 64.5 GW, and solar cell manufacturing capacity went up to 5.8 GW as of December 2023. 60% of installed module manufacturing capacity was equipped to manufacture solar modules in M10 and G12 wafer sizes. Monocrystalline modules accounted for 67.5% of the country’s module production capacity. This was followed by polycrystalline, tunnel oxide passivated contact (TOPCon), and thin film modules. Module manufacturing capacity is projected to surpass 150 GW. Cell capacity is expected to reach over 75 GW by 2026.

IRB SPVs make Rs. 6,110 Crores to NHAI for ToT Projects

IRB Infrastructure Developers Ltd. (IRB) is an integrated multi-national transport infrastructure developer in roads and highways segment. IRB Infrastructure Trust, an affiliate of IRB Infrastructure Ltd. has announced on Monday that its special purpose vehicles have made an upfront payment of Rs. 6,111 Crores to NHAI for toll operate transfer projects. The SPV IRB Lalitpur Lakhnadon Tollway Pvt Ltd. made an upfront payment of the concession fee amount to NHAI. The two projects are IRB Kota Tollway Pvt Ltd. and IRB Gwalior Tollway Pvt Ltd. Successful funding of two TOT projects over Rs. 7,000 Crores ahead of schedule has been a remarkable achievement.

New EV Subsidy scheme after FAME

Govt of India had started a new scheme to promote electric vehicles in India. Implemented by Ministry of Heavy Industries, the new scheme has come into effect from April 1, after the end of FAME Scheme on March 31. Earlier the govt had said that subsidies under the 2nd phase of Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) programme scheme will be eligible for e-vehicles sold till March 31. Or till the time funds are available. The new FAME scheme comes into effect from April 2024 and will continue till July end. The new scheme will offer support of up to INR 10,000 per two wheeler for about 3.33 lakh two wheelers. For small 3-wheeler the new scheme has provision up to 25,000 subsidy for over 41,000 such vehicles.

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