Development Watch – Week #2 Aug ’24
Development News
Under-sea tunnel for Mumbai-Ahmedabad Bullet Train
India’s first bullet train between Ahmedabad and Mumbai includes a significant engineering challenge. It includes a 7km undersea tunnel beneath the ecologically sensitive Thane Creek. The construction of this tunnel represents a crucial phase with TBM being operational by end of 2024. The tunnel forms part of a 21-kilometer underground stretch. Large tunnel boring machines with 13.6 meter cutter heads were utilized. Excavation efforts are under way at 3 key locations of Ghansoli, Shilphata, and Vikhroli. The construction of the tunnel beneath the creek will involve boring at depths ranging from 25 to 57 meters below ground level. Of the total 502-km route, the 352 km in Gujarat are anticipated to become operational by 2027. The project aims for completion by end of 2028.
India to boost helicopter manufacturing
Union aviation minister introduced the Bhartiya Vayuvan Vidheyak Bill, 2024, to enhance India’s aviation sector. The Bill seeks to boost helicopter manufacturing and add sea planes to air travel options. The Minister highlighted India’s untapped potential in the helicopter industry, and addressed concerns about language imposition in the Bill’s text. The Bill promises to enhance the country’s aviation capabilities, introducing helicopter manufacturing and introduction of seaplanes. At present, India operates only 250 helicopters.
India losing focus on International Shipping Industry
India’s seafaring industry has grown significantly, with the country now the 5th largest supplier of seafarers worldwide. Despite the growth, challenges such as Visa requirements and fraudulent agents remain. Enhanced training and government support are key for India to become the top seafaring nation. As per BIMCO’s Manpower study, which is published every 5 years, India is ranked as 5th largest manpower supplier in shipping globally. In 2021 together with Philippines, Russian Federation, Indonesia, China & India supplied bulk of the global workforce in shipping. These 5 countries accounted for 44% of global supply of seafarers.
Road Safety & Mobility Forum 2024
The theme was centered around the road ahead to tech-powered, safer logistics and supply chains. The Delhi edition of the “Safety Circuit: Enhancing Safety Standards in Modern Logistics and Supply Chains”. The roundtable was organized by The Economic Times and powered by Netradyne, brought cross-industry decision-makers together to brainstorm and formulate actionable strategies to make logistics and supply chains safer. The gathering was addressing the safety challenges in India’s logistics and supply chains and the possible remedies to minimize road crashes, and their human and economic toll. A 2023 IIT Delhi study (Socio-Economic cost of Road Accidents in India by DIMTS in Association with TRIPP-IIT Delhi) shows that the National GDP bears a 3.14% erosion because of the socio-economic cost of road crashes.
India, the fastest growing REIT market in Asia Pacific
India’s real estate investment trust (REIT) market grew 31% YoY in 2023. This recorded the steepest growth across Asia Pacific region and emerged as a strong opportunity for investors. This is according to a report by Cushman & Wakefield. The growth was largely due to introduction of Blackstone’s Nexus Select Trust. This is India’s first publicly listed retail REIT. The market is still relatively young. There are only 4 REITS in India, however, this may grow due to high interest from investors. Overall Asian REIT market on the other hand declined to $252 billion. But the traditional market powerhouses of Japan, Singapore and Hong Kong still dominate with a combined share of more than 80% of total Asia REIT market value, having 225 active REITs across Asia. China is the 4th largest market in Asia, ahead of India.
Rural Lakhpati Didis special guests on Independence Day
Around 400 women representatives from Panchayati Raj Institutions have been invited as special guests to the 78th Independence Day celebrations at the Red Fort. The Ministry of Panchayati Raj said this in a statement on 13th August. A “Lakhpati Didi” is an SHG member whose annual income is Rs. 1 Lakh or more. Around 45 Lakhpati didis and 30 Drone Didis were also invited as special guests to attend Independence Day celebrations. They are to be felicitated by the Rural Development Minister. The multi-lingual eGramSwaraj platform was also launched on the occasion. A national workshop for the women invitees was also organized on 14th, addressed by Kiran Bedi, former LG of Puducherry and founder of Navjyoti India Foundation.
India added 1.7 GW Solar capacity in July
In July, India’s solar power capacity increased by 1,733.7 MW, reaching 87.2 GW overall, according to the ministry of new and renewable energy. Since the start of FY25, 5,394 MW has been added. Moody’s indicates India needs substantial investments to meet its 2030 renewable energy target of 500 GW. The total renewable energy capacity addition expected in FY-25 is 30-35 GW, the highest ever if achieved. The pace of renewable energy capacity additions has picked up with more auctions and availability of equipment like solar modules and cells, and wind turbines. To meet the target pf 500 GW renewable energy capacity, $190-215 billion is needed over 7 years.
PM Surya Ghar guidelines for ‘Model Solar Village’
The government has issued guidelines for the ‘Model Solar Village’ component of the PM-Surya Ghar: Muft Bijli Yojana. This aims to create one solar powered village per district to promote solar energy. With a Rs. 800 Crore financial outlay, each village receives Rs. 1 Crore. The Scheme will run until 2026-27. The scheme guidelines for implementation of Model Solar Village were notified by Ministry of New and Renewable Energy on August 9, 2024. The competitive selection process involves assessment of villages on their overall distributed renewable energy capacity installed on 6 months after the declaration of potential candidates by district-level-committees (DLCs). For eligibility, a village must be a revenue village with a population size of 5,000 or above. Implementation of scheme will be done by the State/UT Renewable Energy Development Agency under supervision of District Level Committee.
India may miss 2030 Wind Energy goals
India’s wind installations have grown over the past 3 years, but fell short of the 2030 target of 110 GW. As per a report by energy think tank Ember, India is targeting to build 509 GW of renewables by 2030. They would include 110 GW of Wind. India needs to build 9.3 GW of wind capacity annually from 2024 to 2030. The report analyzed 2030 national wind targets in 70 countries plus the EU, which collectively represents 99% of current global wind capacity. Latest industry forecasts suggest that China is set to triple wind capacity by 2030. Solar and Wind are expected to provide over 90% of the growth in renewables capacity for a global tripling.
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.