Development Watch – Week #2 July ’24
Development News
GenAI for sustainable progress
Larsen & Toubro, a leading engineering, procurement, and construction firm, is prioritizing generative AI for sustainable advancements. This was highlighted by S N Subrahmanyan in his inaugural address as chairman at the company’s 79th annual meeting on July 4. The company is leveraging the power of Gen AI to enhance its processes across the project life cycle from tendering to contract management to design execution, operation and maintenance. To support innovation, the company has launched a collaborative platform connecting aspiring data scientists with domain experts and technology champions to develop cutting-edge, future-proof solutions.
Climate-Smart Agriculture & Solar-based Irrigation
The agriculture sector is urging the upcoming budget to prioritize climate-smart agriculture. This includes innovations like solar-powered irrigation and rainwater harvesting. The sector seeks expanded storage capacities and improved transportation networks to reduce wastage and boost farmers’ incomes. Increased investment in rural infrastructure, collaboration between the government and private sector, and emphasis on sustainability and urban farming are also highlighted.
Railways to build 10,000 non-AC coaches
New Railway Projects worth Rs. 1 Lakh Crore will be implemented in Odisha in the next 5 years. Though many mega railway projects were sanctioned, they were delayed due to land acquisition issues. In Odisha, the State government’s focus on railway projects and infrastructure development, aims to enhance connectivity and economic growth. The state stands to benefit from new initiatives like electronic manufacturing and semi-conductor training centres. This ensures technological advancement and skill enhancement for its residents. Non-AC coaches also include general, sleeper and SLR coaches for Amrit Bharat Trains.
Regional Airports see greater growth
Air travel in India’s hinterland recorded a surge last fiscal, according to data from the civil aviation ministry. The growth was driven by government schemes and expansion of services into unserved and underserved areas by some airlines. At the country’s regional airports, the number of air travelers jumped between 30% and 700% in FY’24 from the previous year. Airport in Diu, operational since 2018, saw passenger traffic increase by 65% to 66,252. Agra too saw a strong growth of 40% in passenger traffic. Tezpur in Assam stood out for a 702% increase in passenger traffic, from around 3,200 passengers in FY-23 to 32,000 in FY-24.
A new shipbuilding, repair policy on the cards
The Ministry of Ports, Shipping, and Waterways is set to introduce a new Shipbuilding and Repair Policy under the 100-day action plan. Ambitious goals have outlined in Maritime India Vision 2030 and Amrit Kaal Vision 2047 to elevate India’s shipbuilding industry globally. The initiative aims to revitalise the industry, increase the share of Indian-owned vessels in cargo transport, and seize a significant market opportunity by 2047. There is a growing trend of Indian overseas and coastal cargo while at the same time highlighting that the share of the cargo carried by Indian owned/ flagged vessels has been dropping over the past decade and presently stands at only about 5.4 per cent
Expediting the award of Road projects
The Ministry of Road Transport and Highways has begun seeking special permission to award road projects after the pace of awards slowed down considerably since November 2023 in the absence of a new scheme to replace the Bharatmala Pariyojana. The National Highways Authority of India, under the MoRTH has invited bids for two stretches of greenfield access controlled highways in Jharkhand on the Hybrid Annuity Model (HAM). The Ministry announced in November 2023 that no new liabilities will be created under Bharatmala Pariyojana Phase 1 until the revised scheme is approved.
Focus on Affordable Housing in Union Budget
Finance Minister Nirmala Sitharaman is expected to prioritize affordable housing in the upcoming Union Budget. Real estate developers are advocating for tax rationalization, more funds for the SWAMIH scheme, and continued government backing to sustain sector growth and stimulate demand. SWAMIH stands for Special Window for Affordable and Mid-Income Housing Scheme. Continued government support for affordable housing initiatives is needed to stimulate demand and sustain industry momentum. Union Budget 2024 is expected to be a boon for several domestic sectors such as affordable housing, capex-related businesses, consumer goods, and rate-sensitive sectors.
India set to be a Deep Tech Powerhouse
Siemens AG plans to increase software and digital services sales to 20%, with India being a key player in this strategy, according to CEO Roland Busch. Siemens is looking now at more of deep technology and development of core products, compared to offshore software in the past. The company has invested in expanding its software portfolio and collaborating with Microsoft on AI technology. India is a vital region for Siemens, where it aims to grow its human resources capital and manufacturing capabilities, targeting both local and global markets. The German conglomerate has become the world’s largest industrial software company, pivoting from legacy industrials and manufacturing. Siemens has invested more than 12 billion euros to build up its software portfolio over more than a decade, with continued expansion.
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.