Development Watch – Week #3 May ’24
Development News
Training for rural solar rooftop panels
The government is working on readying a 100,000-strong workforce skilled in installation and management of solar panels to support its plan of helping 10 million homes on solar energy. The Ministries of renewable energy and skill development and entrepreneurship have jointly framed a “Skilling Plan” for ‘PM Surya Ghar: Muft Bijli Yojana”. This is a government rooftop solar project that aims to help households generate 300 units of electricity through grid-connected solar panels. In addition to trained manpower, another challenge for a large-scale implementation would be the need for a large number of vendors. The government is also looking to train 50,000 vendors for entrepreneurship. The scheme offers subsidies up to Rs. 78,000 for installing solar power generating units. REC Ltd. is the nodal agency for revamped rooftop solar programme and collaborates with NPTI and NSDC.
Earth Observation Data to cut CO2 emissions
Earth Observation data can generate over $3 trillion in economic benefits globally. This would help eliminate two giga tonnes of greenhouse gas emissions annually by 2030. This is according to a new report by the World Economic Forum. Earth Observation data refers to the collection, analysis, and presentation of information about the Earth’s physical, chemical, and biological systems using remote sensing technologies. The report has been created in partnership with Deloitte, and endorsed by industry and climate leaders. Sectors like agriculture, energy and finance are expected to benefit most from EO data. Farmers can use EO data to enhance crop yield and sustainability practices. Insurance companies can also better understand and mitigate environmental risks.
Infra push may raise demand for TMT bars
Government initiatives aimed at bolstering quality and sustainable infrastructure are key drivers for increased demand of TMT bars in India. India has consumed 50.3 million tonnes (MT) of TMT bars in FY-23. This is up from 46 MT in the previous year. Domestic manufacturers have collectively produced 51 million tonnes of TMT bars in FY-23, compared with 47.4 MT in FY-22. The construction industry is increasing turning to TMT bars to meet evolving structural needs. TMT bars are known for superior strength, durability, and earthquake resistant properties and advantages over traditional reinforcement materials. In 2022-23, India’s total steel output was 123 million tonnes (MT) of which 52 MT were TMT bars and rods.
New President appointed for L&T
Larsen & Toubro announced it was elevating R Shankar Raman as President of engineering and construction conglomerate. The company’s senior Executive VP (EVP), energy, Subramanian Sarma, has been elevated to whole time director and President, Energy. Currently, Sarma’s responsibilities include hydrocarbon power, and green manufacturing and development businesses. Raman joined the L&T Group in November 1994 to set up L&T Finance Ltd.. It is a wholly owned subsidiary. He later assumed the role of CFO at L&T and was appointed to the board in October 2011. Post the promotion, Raman will continue to old the position of the whole-time Director and CFO of the company.
India to run Chabahar port in Iran
India and Iran have signed a 10-year contract on Monday, for the management of Chabahar Port. This would seal the deal as a game-changer in regional connectivity. This would rival China’s Belt and Road initiative and become an alternative to Gwadar port in Pakistan. The 10 year contract was signed between India Ports Global Ltd. (IGPL) and Ports Maritime Organization of Iran (PMO). IGPL will invest $120 million in equipping the port. India has also offered a Rupee-credit window equivalent to $250 million for mutually identified projects aimed at improving Chabahar-related infrastructure.
Data Center capacity to double by 2026
India’s data center industry is experiencing significant growth. Its capacity is projected to double to around 2,000 MW by 2026. This expansion is expected to attract substantial investments with an estimated capital expenditure of Rs. 50,000 crores. This amount will be invested over next 3 years until 2026, as per CareEdge Ratings. There is substantial under-penetration of data center capacity in India and signals opportunities for large capacity additions. Despite India generating 20% of global data, its share of data center capacity is only 3%. 5G, IoT and AI are expected to significantly increase data demand, trpling data consumption in India.
Heat pushes demand for temporary rural workers
Rural India is creating a wave of new jobs. This is due to recovering rural demand and a scorching summer which drives up sales of cooling products like Air Conditioners, refrigerators and fans, besides ice-creams and beverages. There is a 20% year-on-year increase in rural job vacancies. This is according to executives at recruitment services and consumer companies. They estimate 20,000-50,000 new temporary jobs are being created this year, thanks to robust summer season demand in rural and semi urban areas. Companies with a large focus on rural businesses are looking to bolster sales and distribution presence in the hinterlands. According to Manpower, there is a 20-25% surge in demand for skilled workers like AC technicians, electricians and emergency responders for installing and maintaining cooling systems.
Urban villages in outer Delhi are like outsiders
Barring some municipal-level issues, life is mainly quiet in urban villages around Delhi. While villagers are aware of changes like groundwater becoming more saline and the village expanding, they are considered inevitable. In the outer Delhi constituency, urban villagers feel neglected and marginalized. Basic amenities and infrastructure improvements continue to elude them. Despite being part of the bustling capital, these residents often feel like outsiders in their own city. These areas include Narela, Bawana, Mundka, Kirari, Sultanpur Majra, Nagloi Jat, Mangolpuri, Rithala, Rohini and Badli. There are other issues like land, connectivity, irrigation in rural regions, sewer, sanitation, water and education in slums. There are problems of crime, parking, traffic and stray animals in urban colonies.
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.