Development Watch – Week #2 May ’24

Development News

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Work demand under rural jobs dips in April

Work demand under government’s flagship rural jobs scheme has eased for the 6th straight month in April, which underscores improved economic activity. The IMF last month raised India’s FY-25 growth forecast by 30 basis points to 6.8%. Although pace of expansion could moderate from an estimated 7.8% in FY-24, India will continue to remain world’s fastest-growing economy this year. About 30.21 million individuals have sought work in April under MGNREGS, a 4.9% decline from the previous year. This is according to preliminary data compiled by rural development ministry. MGNREGS is a demand-driven programme that mainly offers unskilled work.

India 3rd largest solar power generator in 2023

Rapid solar energy deployment in India has pushed the country past Japan to become world’s 3rd largest solar power generator in 2023. The report “Global Electricity Review” has been released by Global energy think tank Ember, which ranked India 9th in solar energy deployment in 2015. Solar has produced a record 5.5% of global electricity in 2023. Likewise, India has generated 5.8% of electricity from solar last year. Solar is world’s fastest-growing electricity source for the 19th consecutive year.

20 year agreement with Sri Lanka for wind power

The Sri Lankan government on Tuesday approved a deal with Adani Green to develop wind power stations in the country. The wind power stations would come up in Mannar and Poonerin. A negotiation committee has been tasked with assessing Adani Green’s proposal, which will culminate in a 20-year power purchase agreement between the parties. The company got the approval in February 2023 to invest $442 million towards development of 484 megawatts wind power plants in two areas located in Northern Sri Lanka. US-backed International Development Finance Corp extended a loan of $553 million to Adani ports for a container terminal in Sri Lanka.

EVs to cut emissions and improve air quality

Electric Vehicles are often seen as a panacea to cutting emissions and air pollution. There would be more immediate benefits by focusing on electric buses, which are surprisingly large source of air pollution. There is also a need to cut rapidly-growing emissions from diesel trucks. However, the main challenge in cutting transport emissions is no longer technological, but it’s uptake. A grid powered by brown coal would mean EVs are dirtier than we think. As more and more clean energy pours into the grid, this becomes less of a concern. Charging EVs from rooftop solar is emissions-free. But even when powered by coal, EVs are still cleaner than petrol or diesel cars. Countries such as Norway and China have embraced EVs faster than others. Air quality in polluted cities has begun to improve with faster adoption of EVs.

Construction Equipment sales rise 26%

India’s construction equipment industry saw 26% increase in sales to 1,35,650 units in 2023-24 fiscal. This is a consequence of government’s infrastructure-led growth agenda. Indian Construction Equipment Manufacturer’s Association (ICEMA) has reported that the industry sold 1,07,779 units in the previous fiscal year. There has been a pre-selection impetus on projects in the pipeline which has led to positive growth in all 5 major construction equipment segments. Earthmovers form the largest segment, accounting for 70% of total construction equipment sales in FY-24.

Indian ports improved earnings in 2023-24

Indian ports have registered an improvement in key parameters and are now performing at global best levels. According to data compiled by Ministry for Ports, Shipping and Waterways, average container turnaround time (TRT) for 8 major ports has improved to 22.57 hours during 2023-24, from 23.44 hours in fiscal 2022-23. The 8 major ports handle 65% of all cargo, moving on central government administered ports of the country. According to the Center, average container turnaround time has now reached less than a day in 2023-24, which is better than USA (1.5 days), Australia (1.7 days), and Singapore (1.0 days). The improvement is on the back of investments in cargo-handling equipment on berths and better supply-chain visibility due to digitalization.

Fast-tracking of infra-related Railway works

The Railway Ministry has increased the financial powers of general managers (GMs) and divisional managers (DRMs) to expedite the execution of infrastructural projects. GMs can now sanction projects worth Rs. 50 Crores. This is 20 times more than their previous sanctioning power of Rs. 2.5 Crores. Financial powers for other works such as research, computerization, staff welfare and customer amenities have also been enhanced. DRMs can now give consent to projects worth Rs. 5 Crores. GMs can sanction infrastructure projects such as yard re-modelling, track renewal, bridge and tunnel work up to Rs. 50 Crores.

Self-repair mechanism for potholes

Potholes persist as a major concern for Indian road users, despite technological advancements. National Highway Authority of India (NHAI) is venturing into an innovative solution: utilization of self-healing materials for road construction. This would lead to autonomously repairing gaps using a blend of steel fibers and bitumen. The innovative asphalt technology involves heating the bitumen to bind with road materials. This prevents the formation of potholes. The pioneering approach enables roads to repair themselves through the use of a novel asphalt blend. It comprises steel fibers and bitumen. Whenever a gap forms, bitumen will expand to fill it.

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