Development Watch – Week #3 June ’24
Development News
Rising vegetable prices a budget strain on households
A survey conducted by LocalCircles, a social media platform, shows that 16% of household consumers surveyed, are cutting consumption, or feeling the pinch of rising prices of onion, potato and tomato. Another 31% of consumers are likely to be impacted, after per kg prices cross Rs. 50 for these items. In Kerala, the summer monsoon has set in two days early. But so far it has remained sporadic, leading to humid weather elsewhere. In most states, with temperatures rising, power cuts and water shortages are being reported. There is more demand for fruits and vegetables, which have become pricier. Prices of essential vegetables like onion, potato and tomato have also gone up by 20-50%. Even rural consumers are witnessing sharper uptick of 8.75%, as per data released by Statistics Ministry. The survey by LocalCircles has received over 27,000 responses from household consumers located in over 316 districts of India. 32% of the respondents were from Tier 3, 4 and rural districts.
DPIIT reviews infrastructure projects of Railways, MoRTH and MoHUA
The Network Planning Group conducted its 72nd meeting to evaluate 3 major infrastructure projects under the PM Gati Shakti National Master Plan. The NMP is a national master plan for multi-modal connectivity. It brings 16 ministries, including railways and roadways together for integrated planning and coordinated implementation of infrastructure connectivity projects. The NPG is chaired by Additional Secretary, Department for Promotion of Industry and Internal Trade (DPIIT). The meeting was held in New Delhi on June 12, 2024. These projects belong to Ministry of Road Transport and Highways, Ministry of Railways and MoHUA.
NHAI to offer Rs. 44,000 Cr of BOT road projects in FY-25
The National Highways Authority of India (NHAI) plans to offer 15 road projects valued at Rs. 44,000 Crores under Build-Operate-Transfer (BOT) mode. This would cover 900 km in FY-25. The initiative aims to revive public-private-partnership (PPP) projects in highways, following amendments to the model concession agreement earlier. These projects are part of a larger plan to offer 53 projects worth over Rs. 2.2 lakh crores, spanning 5,200 km, under BOT mode over next 3-5 years. The government earlier this year amended the model concession agreement to make it attractive for the private sector to invest in road construction. Under the built-operate-transfer (BOT) mode, the successful bidder constructs, operates and maintains the awarded highway. The investments would be recovered through toll rights for a specific concession period.
Dedicated portal for installing rooftop solar panels in Delhi
The Delhi government has launched a portal for solar policy to guide rooftop solar panel installation. This features shadow area assessment process to optimize panel placement and solar capacity calculator for households. The portal will soon have a list of authorized vendors as well. The Delhi Solar Energy Policy 2023 seeks to boost rooftop solar capacity. It offers multiple benefits, including state capital subsidies and generation-based incentives alongside central financial assistance (CFA). Under the policy, all residential projects will receive a capital subsidy of Rs. 2,000 per kW, capped at Rs. 10,000 per consumer. The CFA can be availed under the PM Suryaghar Muft Bijli Scheme.
Self-drop baggage machines at Delhi Airport
The Delhi Airport has launched self-service bag drop to enhance efficiency with 50 units across Terminals 1 & 3. This new system reduces check-in time to 30 seconds. The facility is available with Air India, Air India Express and Indigo airlines. The process eliminates boarding pass or biometric checks, streamlining the passenger experience. Travellers can swiftly drop off their luggage, obtain baggage tags, and print boarding passes, all within mere 30 seconds. This is down from the conventional one-minute process. Delhi is the first airport in India, and second globally after Toronto, to implement the advanced technology.
Kanchenjunga Express Train Accident in West Bengal
The collision between Sealdah-bound Kanchenjunga Express and a goods train near New Jalpaiguri has resulted in at least 15 deaths. Occurring around 9am, the incident is attributed to a possible signal disregard by the goods train. Amid the tragedy, Vande Bharat and Railway Minister Ashwini Vaishnaw were criticized by the opposition over rail safety. An investigation is under way to determine exact cause of the accident.
GIFT City gets bids for 5.22 lakh sq ft
The Gujarat International Finance Tec-City Company Ltd. (GIFTCL) has received highest bid for Rs. 6,557 per sq ft totaling over Rs. 342 Crores for development rights of a proposed residential project in the Special Economic Zone (SEZ) of GIFT City. Ahmedabad-based Nila Spaces has emerged highest bidder amongst other 10, with its record value of Rs. 6,557 per sq ft. The developments will take place on a 1.37 acre plot. This is a the highest-ever price being paid for development rights in the GIFT City. The sharp rise in bids for development rights here tracks the Gujarat government’s decision in December to exempt GIFT City from a 63-year old liquor prohibition law in the state to attract foreign companies to invest in the city. An investment of Rs. 750 crores would be required for developing the plot, including land development charges.
EEPC optimistic on engineering exporting in FY-25
EEPC India remains cautiously optimistic for the engineering exports growth in the current financial year. The shipment has registered a 7.3% Y-oY increase in May, amounting to USD 9.98 billions. There has been a consistent growth pattern, with the April-May period of FY-25 witnessing exports totaling USD 18.65 billion. This is a modest rise from USD 18.25 billion for 2 months of FY-24. This is as per Engineering Export Promotion Council. Several Free Trade Agreements (FTAs) are under negotiation. These could be finalized within the fiscal year, potentially providing a significant impetus to the sector. China is also shipping large volumes to the US. In the wake of additional import duties, that could be applicable to Chinese goods from August this year.
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.