Development Watch – Week #1 Aug ’24
Development News
Greenway Grameen helping rural kitchens cut emissions
A recent report by the Centre of Science and Environment says 41% of Indian kitchens still rely on traditional sources of fuel such as wood, cow dung or other biomass. Emissions from the source are 340 million tonnes of CO2 annually, or 13% of greenhouse gas emissions. Hence, clean stoves are one of the most cost-effective ways to cut carbon emissions from kitchens. Greenway Grameen aims to bring innovative solutions to rural household problems. It makes stoves that are built on the basis of patented air-flow technology. It allows for better mixing of oxygen with unprocessed fuel and lowers heat loss. It uses all solid biomass fuels but is more efficient than traditional mud stoves. They reduce consumption of fuel to almost 1/3 and reduce indoor smoke by 80%.
Grid connectivity in non-solar hour
The Indian government is considering a proposal that suggests in the non-solar hours, electrical grid capacity be assigned to solar power producers without storage systems should be freed up for power input mainly through storage by existing or other generators. Deliberations are on to reduce grid connectivity of solar power plants that don’t have storage systems to just the solar hours, against the entire day now. This will free up the grid in non-solar hours and allow for more electricity to be injected into the system. Mostly by addition of energy storage.
30 Lakh crores investment in RE for 500 GW target
An investment of up to Rs. 30 lakh crore is expected to meet the country’s target of having 500 GW renewable energy capacity by 2030. The outlay for 2024 has been doubled this year. There has been a significant shift in the investment Dynamics of RE projects. Around 7 lakh Crore in the last 10 years has already been invested. To set up a non-fossil fuel based capacity of 500 GW, an investment of Rs. 30 lakh Crores is expected. Orders have also been placed for schemes such as PM Surya Ghar, PM Kusum, National Green Hydrogen Mission, Viability Gap Funding (VGF) and PLI for solar modules. Solar power tariffs, which were almost Rs. 11 in 2010-11, now have come down to Rs. 2.60/- per unit in 2023-24. This has been helped by schemes such as PLI for domestic manufacturing. Now India is at 4th position globally in terms of installed capacity. India is at 4th position in wind capacity and 5th in solar capacity.
DDA Sasta Ghar housing scheme
The Delhi Development Authority (DDA) is launching three housing schemes offering approximately 40,000 flats to various income groups. The DDA Sasta Ghar Housing Scheme 2024 will provide affordable flats starting at Rs. 11.5 lakh on locations like Rohini and Narela. To meet affordable housing requirements of LIG and EWS, flats at discounted rates are being offered at discounted rates in Ramgarh Colony, Siraspur, Loknayakpuram, Rohini and Narela through first come first serve mode. MIG, HIG and higher category flats will also be offered in upscale area of Dwarka in sectors 14, 16B, and 19B through an e-auction. According to a study by Knight Frank India, cities like Pune, Ahmedabad and Kolkata have the most affordable housing markets. Ahmedabad has an EMI to income ratio of 21% for an average household.
GST on TODR causes hurdles for landowners
GST Authorities are now levying tax on transfer of development rights and asking landowners to pay taxes on transferring these rights to real estate developers through joint development agreements between realty developers and landowners. The matter of taxability on such transactions is currently pending before the supreme court. The applicability of 18% GST may impact cost dynamics of joint development and redevelopment projects across major property markets in the country. The reverse charge mechanism under GST stipulates that the responsibility for discharging tax lies with the receipt or the developers. And not the supplier or landholders. This ensures a streamlined tax collection process and reduces compliance burden on landowners.
New shipbuilding scheme to incentivize shipyards till 2035
Ministry of Ports, Shipping and Waterways (MoPSW) is working on a new shipbuilding scheme. This would incentivize Indian shipyards till 2035 by various measures. Ports, Shipping and Waterways Secretary TK Ramachandran said that with the new policy, India will endeavour to be among the top 10 shipbuilding nations by 2030 and top 5 by 2047. It is currently 22nd in the world, at present. Global cruise company, MSC Cruises, based out of Geneva, has expressed willingness to deploy their ships for domestic itinerary. MoPSW in coordination with Ministry of Petroleum and Gas will also have a JV between Shipping Corporation of India (SCI) and oil marketing companies to own large tankers. The government will also provide 30% financial assistance for vessels where main propulsion is achieved by means of green fuels such as methanol/ammonia/hydrogen fuel etc. 20% financial assistance is also being provided for vessels fitted with fully electric or hybrid propulsion system.
Cabinet has approved 8 high speed corridors estimated at Rs. 50,655 Crores
The Cabinet Committee on Economic Affairs chaired by PM Narendra Modi approved the development of 8 national high speed corridor road projects with a length of 936 km at a cost of Rs. 50,655 Crores. This is aimed at improving logistics efficiency, reducing congestion, and enhancing connectivity across the country. The projects are spread across UP, MP, Chhattisgarh, Maharashtra and Assam. The average annual construction in India is up by about 2.4 times to 9,600 km in 2014-24 from about 4,000 km in 2004-14. Every rupee spent on infrastructure development has a multiplier effect of 2.5-3.0 times on GDP. There is a focus on ensuring consistent standards, user convenience and logistics efficiency. The 50,000 km network of high-speed railway corridors has been identified through a scientific transport study based on GSTN and toll data.
100 Vande Bharat trains introduced in 5 years
As many as 772 train services, including 100 Vande Bharat services, have been introduced in the Indian Railways network from 2019-2020 to 2023-24. To cater to the travelling needs of different segments of passengers, Indian Railways has introduced and operates different types of services. This includes express trains, superfast trains, passenger MEMU/DEMU trains and suburban services. Introduction of train services is an ongoing process over Indian Railway is subject to traffic justification, operational feasibility, availability of resources, etc.
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.