Development Watch – Week #4 June ’24
Development News
$1.8 trillion investment not adequate for COP28 goals
More than 100 countries at the COP28 climate summit in Dubai had agreed to triple renewable energy capacity by 2030, and cut down the use of fossil fuel and emissions. This move is seen vital to avert the worst effects of climate change. The pledge made at COP28 is one of the several energy-related announcements that include new measures and funding to combat methane emissions, agreements to cut coal use, and nuclear energy promotion. As per a report by consulting firm EY, a record $1.8 trillion may still not be enough to meet the COP28 target of tripling renewables capacity by 2030. Another challenge is to link projects with the electric grid, in order to integrate new wind, solar and battery power. China is a leader in renewable energy development, alongside US and Germany. Growth in solar and wind power has pushed renewable generation to a record 30% of global electricity production in 2023.
25% share by Indian shipping liners can save $50 billion annually
Exporters have sought the creation of an Indian shipping line, along with duty cuts on import of products like wet blue leather. This would be an extension of a key scheme for small exporters to avail pre and post-shipment rupee export credit, and duty drawback for platinum jewelry at their pre-budget meeting with finance minister Nirmala Sitharaman. Highlighting the need for an Indian shipping line, the Federation of Indian Export Organization president Ashwani Kumar said that India’s outward remittance on transport services is increasing with rising exports. Trade body NASSCOM is also pushing for favorable policies like transfer pricing rules and deep tech clarity.
Budget approved for Varanasi airport
The Union Cabinet has approved a Rs. 2,870 Crores proposal for expansion of Lal Bahadur Shastri International Airport in Varanasi. The proposal includes extending the runway to dimensions 4075m x 45m and constructing a new Apron to park 20 aircrafts. It also includes the construction of a new terminal building, parallel taxi track and other allied works. The budget is also aimed at enhancing passenger handling capacity of the airport to 9.9 million passengers per annum (MPPA) for the existing 3.9 MPPA.
Kanchanjunga train accident due to communication failure
Northeast Frontier Railway (NFR) authorities were not officially notified about an automated signalling failure that required a switch to manual authorization of rail traffic between Rangapani and Chattar Hat stations. This took place at 5:50 am on June 17, the day of the accident that claimed several lives. The communication failure preceded the fatal collision between a freight train and the Kanchenjunga Express. A joint observation report documented that all documented signals in the area had ceased to function from 5:50 am on day of the accident.
The loco pilot of the freight train should have stopped at red lights and then proceeded cautiously at a speed of 10-15 km/hr. Instead, the driver was issued a paper line-clear ticket, a T/A 912, which allowed the freight train to cross Rangapani without reducing speed, leading to the collision. As a result, 2 trains were allowed to proceed on the same line just 15 minutes apart, leading to the accident. Proper training for railway staff on the section, which has only transitioned to automated signalling seven months ago, was reportedly inadequate, compounding the issue.
India requires data center capacity of up to 3.6 Giga Watts
India is poised to become global data centre hub owing to low cost of construction, low cost of land and power compared to other countries. India is already having a well-established IT and digitally enabled services ecosystem. According to Cushman and Wakefield, the median cost of constructing a data centre in India is estimated at USD 6.8 million per Mega Watt of capacity. This is significantly lower than most APAC nations. Australia is at 9.17 million, Japan is at 12.73, Singapore is at 11.123 and China is at 6.84 MW. India’s data centre capacity stood at 977 MW across the top 7 cities. India’s current under-construction capacity addition stands at 1.03 GW for 2024-2028, with an additional 1.29 GW being planned, taking the total projected capacity to 3.29 GW by 2028.
Noida extends rehab package for projects facing insolvency
The Uttar Pradesh government has extended the rehabilitation package for housing project developers facing insolvency proceedings by two weeks. The package offers incentives such as interest waivers and penalties during the pandemic in exchange for withdrawing cases with the NCLT or courts. The package aims to assist developers like Supertech, ATS, and Logix Group who have stalled projects and owe significant dues. Builders can opt for the package if they choose to withdraw their cases with National Company Law Tribunal (NCLT) or in different courts, as notified by Noida Authority.
Rising solar cell output to curb imports from China
India expects a surge in domestic solar cell-making capacity in the coming months. This will help reduce its dependence on imported materials from China to manufacture solar panels. US and European officials have also complained that a flood of new supply from Chinese solar companies has overwhelmed global demand. In a bid to wean itself off Chinese imports, India has levied taxes on some solar components and introduced a so-called approved list of models and manufacturers. A non-tariff trade barrier is essentially meant to keep foreign shipments out.
Retail inflation stable for farm, rural workers
Retail inflation for agricultural labourers and rural workers in India remained flat at 7.7% and 7.02% in May. The point on point inflation rate for CPI-AL was recorded at 7.0% in May 2024. CPI-AL stands for Consumer Price Index-Agricultural Labourers while CPI-RL is Consumer Price Index-Rural Labourers. While for CPI-RL, it was at 7.02%. The main items driving the indices were vegetables, pulses, wheat, onion, milk, turmeric, ginger, fish, jowar, pan leaf, medicines, shirting cloth, saree and leather chappals. A diverse pattern was observed in the indices of constituent states. Bihar experienced a decline for both CPI – AL and RL. The index of agricultural labourers remained stationary for Jammu & Kashmir.
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.