Development Watch – Week #5 May ’24
Development News
Heat waves sweep across rural India
There is greater focus on local issues in 2024 elections across states like Andhra Pradesh, Telangana, Karnataka and Maharashtra. Despite a doubling of subsidies under the present government, people in villages speak of the daily distress from rising food prices, and of the urgent need for more government relief. Though highways and expressways have been built by the administration, there is a chaos in urban development across the routes that does not allow speeds to go beyond 50 km per hour between cities. To win the more prosperous southern states, candidates are spending close to $15 million per constituency. In return, voters expect instant delivery of public services (“Swiggy” politics). In the state of Maharashtra, industry is so thin and jobs so few that young people are emigrating by thousands, leaving behind a village of retired people. Issues range from farmer suicide, and struggles to export onions and pomegranates.
India’s solar energy potential
India has the potential to generate around 750 GW of power from solar sources, with only 11% utilization at present. New rooftop solar schemes can also help ramp up capacity faster. While the country has doubled its solar power installed capacity rapidly to 81.8 GW from 40.1 GW in FY-2021. It is worth noting that India has a solar power potential of 750 GW and 5 states account for 55% of India’s potential. Top 5 states having highest potential installed capacity include Rajasthan (142 GW), Jammu & Kashmir (111 GW), Maharashtra (64 GW), Madhya Pradesh (62 GW), Andhra Pradesh (38 GW) and Gujarat (35.8). As of date, only 4 states have utilized over a quarter of the potential.
HPCL and MG Motors to jointly enhance EV charging infra
MG Motor India and Hindustan Petroleum Corporation Ltd. are collaborating to expand EV charging infrastructure in India. They aim to install fast chargers at key locations for long distance and intercity commutes. As per the collaboration, MG and HPCL will together install 50 kW/60 kW DC fast chargers at key locations, mainly covering highways and cities across India. The partnership will focus on convenience to EV users through availability of EV chargers during their long distance and intercity commutes. HPCL currently has a nationwide network of over 22,000 fuel stations. HPCL also aims to install 5,000 electric vehicle charging stations by December 2024.
Infra push and talent helps satellite cities commercial realty
India’s commercial real estate landscape in satellite and tier 2 cities is undergoing significant transformation due to robust infrastructure development, strategic urban planning, talent availability and lower cost of living. Cities like Navi Mumbai, Pune, Gurugram, Noida and Hyderabad have seen extensive investment in road networks, metro connectivity and digital infrastructure, making them attractive hubs for businesses. These cities are also emerging dynamic talent hubs led by connectivity, infra, lower cost of living and improved quality of life. These are key factors in attracting both businesses and employees. Factors like talent availability, government support, infra development and cost considerations are reshaping organizations’ location and strategies and talent acquisition approaches. For instance, in Navi Mumbai, the ongoing development of key projects such as the International Airport, Trans-Harbor Link and new Metro line reinforce the promising outlook for the micro market.
Features of Golden Quadrilateral – India’s key highway
The Golden Quadrilateral is a network of 4 national highways in India that connect the 4 major metro cities of Delhi, Mumbai, Chennai and Kolkata in a 4-sided (quadrilateral) configuration. It is one of the most important road projects in India. It has also played a significant role in the country’s economic development. It is the longest highway project in the country and 5th longest in the world, with a total length of 5,800 kms. The 4 major arms of Golden Quadrilateral are Delhi-Kolkata, Chennai-Mumbai, Kolkata-Chennai and Mumbai-Delhi. The Indian government will also expand the Golden Quadrilateral by adding additional lanes and improving safety measures.
Red Sea crisis driving up cost of goods
The red sea crisis is driving up the cost of while goods. The conflict is causing a shortage of shipping containers, leading to challenges like contract cancellations due to the force majeure clauses. Shipping lines are adjusting to the situation post the financial year closure. There is an acute shortage of shipping containers are arising out of Iran-Israel skirmishes, which is driving sea-freight costs from China. This would cause consumers to pay more and wait longer for large gadgets, such as IT hardware, television sets, washing machines and ACs, which use the sea route. There are about 330 large ships carrying 11,000-12,000 containers each, which are taking a longer route (8,500 km extra) instead of going through Suez Canal to avoid conflict zones in the Red Sea to reach their destinations in the US and Europe.
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.