Development Watch – Week #5 July ’24
Development News
Weak demolition and waste management in the construction sector
India’s construction sector is booming, but management of construction and demolition waste is rather weak. India will add billions of sq mt of space for housing, commercial spaces, cold storage, industrial corridors, smart cities, roads, and highways in the coming years. The construction sector is expected to reach $1.4 tn by 2025 and contribute about 13% to the economy. While this infra surge is good for the economy, it will generate enormous amounts of construction and demolition waste (CDW) and increase the demand for virgin building materials that require mining. some recommendations have been made by Anant Centre for Sustainability for recycling of the construction waste.
Drone delivery services for the last mile
Logistics service provider DTDC Express partnered with Skye Air Mobility to launch last-mile drone-based deliveries. It started with a successful 7.5 km delivery from Bilaspur to Gurgaon sector 92. The milestone partnership plays a role in reshaping last-mile logistics amid digitalization and changing consumer behaviors. The eco-friendly drone delivery aims to reduce carbon emissions and traffic congestion. There are plans for expansion across India to enhance delivery speed, efficiency, and sustainability. The drone delivery system is eco-friendly and contributes to reducing carbon emissions and traffic congestion.
9,784 Railway Bridges sanctioned for repairs
The Indian Railways has sanctioned 9,784 railway bridges for repairs, strengthening, rehabilitation or rebuilding. In the recent past there have been collapse of railway bridges, with several number of persons killed or injured. The members of Parliament also wanted to know the steps taken by the government to repair all old railway bridges across the country. All railway bridges are inspected twice a year, one before the onset of monsoon and one detailed inspection after the monsoon. during the last 3 years, 5,405 bridges have been repaired, rehabilitated, strengthened or rebuilt in Indian Railways.
$2.77 billion investment in Indian Real Estate in Q2 2024
India’s real estate market witnessed a surge in investments during Q2 2024. It attracted $2.77 billion. This also boosted H1 2024 investments to 3.9 billion, leading to a 39% Y-o-Y increase. The growth is led by infrastructure sector, reflecting strong investor confidence and robust market demand. The surge is primarily driven by infrastructure-related sectors like logistics and industrial, fueled by significant public investments in multi-modal economic corridors. In terms of cities, Delhi-NCR emerged as the top destination for private equity investments in Q2, attracting USD 532 million and capturing 19% of the total share of investments. This marks a significant 74% year-on-year increase
Minimum local sourcing requirement for wind energy plants
NITI Aayog has raised alarm over cyber security issues due to import of wind sector components by wind turbine original equipment manufacturers (OEMs). The Aayog has submitted its report to the Ministry of New and Renewable Energy. There is also a need to examine power power controller (PPC) OEMs of foreign origin, especially those from China, to minimize cyber security related challenges. The main issues are OEM’s data collection servers, which are situated outside of the country. Vulnerabilities in data and power system network operations due to updating operating softwares of wind plant devices by OEMs without any permission from grid-operator and MNRE.
Tata Power partnership for EV charging financing
Tata Power Solar Systems Ltd has partnered with Bank of India to offer easy financing options for rooftop solar installations and EV charging stations. The collaboration has aimed to support the government’s green energy initiatives, offering loans with attractive interest rates and collateral-free options to residential users, housing societies and MSMEs. The collaboration also support the government’s initiatives to promote rooftop solar installations, targeting a wide spectrum of customers, including residential users under PM Surya Ghar Yojana, housing societies, and MSMEs.
Farm Loan defaults rise due to weak rural economy
Unpredictable weather has impacted output and rising agricultural costs are stretching the incomes of farmers and rural borrowers. Their loan repayments to private lenders and micro-financial institutions are also delayed. Microfinance loan disbursal slowed in April-June due to general elections and heatwaves. Rural areas are still recovering from impact of the pandemic. More than 40% of India’s 1.4 billion people are dependent on agriculture. It has been hit in recent years by rising temperatures, patchy monsoon rains and policy interventions. Indian government subsidizes loans to farmers, and banks are mandated to give out farm loans. The loan value has doubled to more than $250 billion in the last 4 years.
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.