Development Watch – Week #3 April ’24
Development News
India to construct 8% more roads in 2024-25
India is expected to maintain current road construction momentum. Additional 13,000 km would be added until March 2025. This would be an annual increase of 5-8%, as per ICRA, the Indian arm of rating agency FItch. Since 2014, India has built about 90,000 km of national highways. This is double that constructed in the preceding decade. ICRA guides that India’s road expansion, doubling highways and huge capital spending fuels construction acceleration.
West-Asia tensions bring tougher times for shipping
Iran has escalated tensions with Israel through a drone and missile attack. This has raised concerns in the global maritime industry, causing supply chain disruptions and potential shipping route blockages. A Persian Gulf Shutdown can also impact shipping costs and trade dynamics. Efforts are under way to defuse tensions and maintain supply chains amidst the crisis. Iran launched 330 missiles and drones on Israel in retaliation to an alleged attack by Israel on a diplomatic mission of Iran in Damascus, Syria. The Strait of Hormuz is one of the world’s most strategically important choke points. The diversion of each ship is estimated to cost $30 million through Cape of Good Hope from Suez Canal. Shipping costs have gone up 3-4 times ocmpared to pre-Covid levels.
Ahmedabad-Delhi bullet Train in the works
The ruling party in its manifesto has promised one bullet train each for north, south and east India. New high speed train would significantly reduce travel time. Route includes key stations. The National High Speed Rail Corporation (NHSRC) oversees the project, utilizing LiDAR surveys for connectivity. The bullet train is expected to operate at an average speed of 250 km/hr on an elevated corridor. It would reduce the 12-hours journey to just 3.5 hours. As per the DRP, which was recently finalized by the Railways, the route will include key stations such as Himmatnagar, Udaipur, Bhilwara, Chhitorgarh, Ajmer, Kishangarh, Jaipur, Rewari, and Manesar. The proposal is part of the government’s plan to improve connectivity and boost tourism.
Over 46% office leasing in India by off-shoring industry
India’s offshoring market dominates office space leasing, comprising 46% of total leasing in 2023. This is led by global capability centers (GCCs). With a rise of 36% in leasing volumes, GCCs are pivotal in fostering over 1,580 centers. India’s unique proposition as a high-skill, low-cost market positions itself as a global hub for offshoring. Though IT remains the biggest GCC occupier in India, the recent growth was propelled by GCCs from industrial sector. Particularly in semi-conductor, automobile, and pharmaceutical industries.
Rs. 33,000 Crores Income-Tax claim on Jaypee Infra
The Supreme Court will review the validity of the IT Commissioner’s assessment of Jaypee Infratech Ltd. (JIL). JIL has raised a claim of Rs. 33,000 Crores. the Court has requested the Central Board of Direct Taxes to examine the order and file an affidavit within 4 weeks. The NCLT has approved the resolution plan of Suraksha Realty and Lakshadweep investments and Finance, allowing them to take over JIL for Rs. 20,363 Crores.
Rs. 270 Crores order for Vande Bharat Trains
Ramkrishna Forgings Ltd on Monday said it has received an order of Rs 270 crore from a consortium led by BHEL to supply bogie frames of Vande Bharat train sets. The scope of the project involves the development and validation of the bogie frames for the sleeper version of the Vande Bharat train sets, Ramkrishna Forgings Ltd (RKFL) said in a statement. This order encompasses 32 train sets, each comprising 16 coaches and RKFL will be producing a total of 1,024 bogie frames.
India’s engineering exports at $109 billion in FY-24
India’s engineering exports edged up to USD 109 billion in 2023-24 despite a slowdown in some of the major global markets amid geo-political tensions, EEPC said on Monday. India’s engineering exports are competitive globally and expected to gain further market share in the coming years, with the country entering into more FTAs, it added. The apex body of engineering goods exporters expects the value of shipments from the sector to rise to USD 300 billion by 2030 and generate a significant number of jobs and foreign exchange earnings in the process.
Bridging Energy inequality in Rural India
For villages in rural India, lack of electricity prevents people from leading a better life. With solar energy, Sachin Shigwan is trying to make a difference. In some 750 villages, residents have electric fans to cool themselves; students have lights to read at night; and women can collect clean water from a community tap instead of walking kilometres for a bucket of water. All this because his initiatives used solar power to bring electricity to these places. Shigwan is the founder and Managing Director of Green India Initiative Private Limited (GIIPL).
Green India Initiative is different in the way it operates. “Our end user is not a buyer and our buyer is not the end user. We serve NGOs that want to execute sustainable and green projects in the community. We also serve corporates who want to do their CSR or ESG projects; we help them execute it. We serve as a bridge between the corporates, NGOs and the beneficiaries. Green India has served more than 12 states, from Jammu in the north to Assam in the east. The company now plans to foray into states like Uttarakhand, UP, and Mizoram.
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.