Development Watch – Week #3 Aug ’24

Development News

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World’s largest solar hub approved by Australia

Australia has approved plans for a massive solar and battery farm that would export energy to Singapore. This project is dubbed the “largest solar precinct in the world”. Authorities have announced environmental approvals for the US $24 billion SunCable project in Australia’s remote north, and it may power up to 3 million homes. The project is backed by tech billionaire and green activist Mike Cannon-Brookes. The project will include an array of panels, batteries, and eventually, a cable linking Australia with Singapore. The energy production may begin in 2030. The 12,000 hectare project will provide 4 GW of energy per hour for domestic use. In 2022, renewables made up 32% of Australia’s total electricity generation.

“One Nation, One Location” target of Road Ministry

India’s road transport and highways Ministry has planned to create integrated public transport and terminal infrastructure. The initiative is aimed at centralizing roadways, railways, airways, waterways and ropeways to improve passenger convenience and movement efficiency. Pilot hubs are proposed in Katra, Tirupati, Varanasi, and Nagpur to facilitate this integration and reduce urban congestion. The hubs will have rail, helipad, bus, parking facility, hotels and retail chains. Bus bays, car parking facilities, taxi stands, toilets, baby care rooms, passenger lounges and waiting room facilities would also be provided. The commercial zones attached with the terminals will have hotels, commercial complexes, restaurants and recreational facilities.

Global trade needs alternative to China

India is upgrading ports to bolster its manufacturing and exports. Efforts include expanding the Jawaharlal Nehru Port and constructing a new deep-water port in Vadhvan. These enhancements aim to cut trade costs and speed up delivery times, appearing to global companies looking to diversify manufacturing away from China. Roughly 1 of every 4 shipping containers passing through India is loaded or unloaded at JNPT, located just south of Mumbai. Yet by the standards of world’s largest ports, it remains a small operation. India is now pursuing an aggressive campaign to catch up, readying plans for new ports while expanding existing docks. The major action is aimed at Vadhvan, an industrial area 100 miles up the coast. An enormous facility with capacity of 20 million 20-foot containers per year. The project is estimated to cost more than $9 billion.

Rural economy driving India’s growth

India’s rural economy has grown more robust than urban areas, driven by higher government spending. Future growth is anticipated to remain strong, bolstered by capital expenditure plans and good monsoon conditions. The favorable monsoon conditions and improved sowing data are anticipated to sustain upward trajectory in rural demand, providing a buffer against potential economic uncertainties. The government’s ambitious plans for capital expenditure amounts to Rs. 11.1 trillion. It will stimulate infrastructure development, further enhancing rural economic prospects. India’s credit rating may also improve because of the strong tax revenue and a large dividend from RBI – leading to an improved sovereign rating.

L&T bags large order for Infra-development in Maharashtra

Engineering & Construction conglomerate L&T has bagged a ‘large’ order for integrated infrastructure development in Maharashtra. The order has been bagged by Transportation Infrastructure vertical of L&T. Orders in the range of Rs. 2,500-5,000 Crores are classified as ‘large’ by the company. L&T has secured an order for integrated infrastructure development project in town planning schemes 2-7 under Navi Mumbai Airport Influence Notified Area (NAINA) Project in Maharashtra. The project has been awarded by CIDCO for integrated infra development of roads, construction of various major and minor structures and allied electrical works. Allied electrical works and construction of utility works are also part of the project.

Blockchain helping transform India’s Realty landscape

Blockchain technology is gradually transforming real estate across the world by introducing transparency, security and efficiency in property transactions. While still in early stages, its application in land records management and property financing is gaining momentum. Primarily driven by the potential to reduce fraud and streamline the process. Blockchain is a decentralized digital ledger that records transactions across multiple computers. In Real Estate, it enables secure, transparent and tamper-proof recording of property transactions, contracts, and ownership details.

Blockchain’s distributed nature ensures that once information is recorded, it cannot be altered without consensus. That reduces fraud and enhances trust among stakeholders. Every transaction is time-stamped and cryptographically secured. The transactions hence become accurate and cannot be manipulated. Blockchain can simplify property transactions through self-executing Smart Contracts. Terms of the agreement are written into code. Smart Contracts automatically enforce terms once all conditions are met. This reduces the need for intermediaries like lawyers and brokers.

Talent, Tech and Realty propelling Telangana’s advantage

Hyderabad has emerged as a key location for Global Capability Centres (GCC). It has a staggering 21% share of India’s total GCC leasing of 53 million sq ft between 2022-2024. As per a report by CBRE and CREDAI, Hyderabad’s office space leasing recorded significant 4.4 million sq ft in January. Workforce readiness also offers opportunities for manufacturing sector, start-ups and offices. Hyderabad has attracted global IT giants, biotechnology and pharmaceutical sectors, establishing itself as one of India’s premier technology centres. New office developments are coming up in IT Corridor and Extended IT Corridor. Primary drivers of office space demand in the City are technology and research, consulting and analytics firms (RCA) firms. Other contributors are BFSI, flexible workspaces, engineering, manufacturing, life science companies, are contributing to office space absorption.

2,000 Housing projects stalled across 42 Cities

Nearly 2,000 housing projects comprising 5.08 lakh units are stalled across 42 cities in India. This is mainly due to financial mismanagement by developers and lack of execution capabilities, cash-flow mismanagement, real estate disputes, diversion of funds to buy new land or retire other loans, as per data analytic firm PropEquity, owned by PE Analytics Ltd. The government has launched Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund in November 2019. In the last 5 years, around 32,000 units have been completed. Greater Noida in Tier 1 with 74,645 units and Bhiwadi in Tier 2 with 13,393 units have maximum number of stuck units. Gurugram has 158 stalled projects with 52,509 units.

Meerut RRTS Station commences passenger operations

The Meerut South RRTS station has commenced passenger operations on Sunday at around 2pm. This would link Meerut more closely to Delhi. This new addition means 42km of Delhi-Ghaziabad-Meerut RRTS corridor is now functional, including 9 stations from Sahibabad (Ghaziabad) to Meerut South. The full 82-km corridor from Delhi to Meerut may become operational by June 2025. The time taken will be only 45 minutes, a substantial reduction from 2 hours of bus travel. The Rapid Rail system was inaugurated by the Prime Minister. Meerut South will serve as a critical access point to the rest of Meerut City and the district. This includes areas like Mohiuddinpur, Bhudbaral, Bahadurpur, Aminagar, and nearby localities. Pending sections include a 14 km stretch from Jangpura to Sahibabad, and a 23.6 km portion from Meerut South to Modipuram.

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