Development Watch – Week #2 Sept ’24
Development News
Synergy between Rural and Urban India needed
The Viksit Bharat initiative aims to elevate the average income of 1.5 billion Indians to match that of developed nations by 2047. India’s urban population is expected to grow from 34% in 2018 to 40% by 2030. On the other hand, the rural population will see a slight decrease. To achieve developed status, a strong synergy between urban and rural areas is essential. The key objective of National Industrial Corridor Development Programme (NICDP) is to make India a global manufacturing hub. It will be an all-round catalyst that will improve overall quality of life of citizens. Rural productivity can be increased through an agro-industrial complex and better access to both logistics and social infrastructure. Multiple Smart Cities along NICDP take an industrial corridor approach with multimodal infrastructure, last-mile connectivity, expedited land acquisition and minimized clearances.
Suzlon Energy bags 1.16 GW Order from NTPC
Wind energy major Suzlon Group has secured India’s biggest wind turbine order of 1,166 MW from NTPC Green Energy Ltd., a subsidiary of NTPC. The cost of setting up 1 MW is Rs. 6 Crores. Suzlon will install a total of 370 wind turbine generators (WTGs) of $ 144 equipped with a hybrid lattice tubular tower, and a rated capacity of 3.15 MW each at two projects of NTPC Renewable Energy Ltd., and one project of Indian Oil NTPC Green Energy Pvt. Ltd. This takes Suzlon’s cumulative order book to 5 GW. Suzlon will supply the wind turbines and execute the project, including erection and commissioning, in Gujarat, as well as undertake operations and maintenance services post commissioning.
RE sector to provide momentum to Indian Economy
The rapidly growing renewable energy sector will provide momentum to the Indian economy in the upcoming years. At the BNEF Summit, the RE Minister highlighted the steps taken by the Modi government to promote RE sector. The cost of solar power in India is among the cheapest in the world. Mainly due to the higher number of sunny days. The key to decarbonization of India’s electricity sector lies in being able to meet incremental demand from non-fossil fuel sources. For this to happen, success in creating large-scale grid storage is essential. India also has a policy to promote pumped storage projects to store excess electricity. There is a PLI Scheme for High-efficiency Solar PV Modules with an outlay of Rs. 24,000 Crores. Under this scheme, Letters of Award have been issued for setting up 48,337 MW of fully and partially integrated manufacturing capacity of high-efficiency solar PV modules.
Railway achieves higher freight loading in August
Indian Railways has achieved a significant milestone by loading 126.97 MT of freight in August 2024. This has brought the total total to 653.22 MT for the financial year up to August. It marks an increase from the previous year’s 634 MT. The Railways aims to reach 3,000 MT by 2030 through network expansion and operational enhancements. Indian railways is expanding its network, upgrading its fleet and enhancing its operational efficiency as part of the National Rail Plan. In addition to coal, Indian Railways handles diverse range of commodities essential for the economy – coal & coke products, 54 types of minerals & ores, 37 types of food grains, flours & pulses, & 23 types of cement & clinker products. It also transports chemical manures, iron & steel, petroleum products, granite, oils, sugar, salt, gasses & automobile products.
Review of Ports to identify shortcomings
India is conducting a thorough review of its major ports to identify operational shortcomings and infrastructure deficiencies. The goal is to enhance port capacities, prepare for larger ships, and incorporate green technologies. The initiative aligns with the Maritime India Vision 2030, and aims to optimize cargo handling & ship turnaround time. Ports of Vizag, Mundra, Pipavav, Kamarjar & Cochin rank among top 55 in the world. New technologies and sectors have emerged since the Vision 2030 goals were defined, and need to be incorporated going forward.
10-year extension of UDAN scheme
Union Minister of civil Aviation announced plans to extend the Regional Connectivity Scheme (RCS)-UDAN for another 10 years. The government aims to increase the number of airports from 157 to 400 by 20247, and make India a global hub for aircraft manufacturing. Ude Desh ka Aam Nagrik (UDAN) scheme was launched in October 2016, with the aim of making air travel more affordable to people. The scheme has achieved huge success. Right now we have 157 airports, and will expand to 400, including water-drome airports, heliports, etc. India will also enter into aircraft manufacturing to become a global hub for manufacturing & export.
PM Gram Sadak Yojana Phase 4 implementation
Union government led by PM Narendra Modi has approved the PM Gram Sadak Yojana IV for FY 2024-25 to 2028-29 with a budget of Rs. 70,125 Crores. This initiative aims to construct 62,500 km of roads, connecting 25,000 unconnected habitations and upgrading bridges using advanced construction technologies. PM GSY-IV will incorporate international benchmarks and best practices in road construction, such as Cold Mix Technology, Waste Plastic, Paneled Cement Concrete, Cell-filled Concrete, Full-depth reclamation, and use of construction waste and other materials like Fly Ash and Steel Sag. The PM Gati Shakti portal will help provide tools for road alignment planning, and also assist in DPR preparation.
Indian REITs market to surpass $60 billion by 2026
India is projected to have a potential Small & Medium Real Estate Investment Trusts (SM REITS) market value exceeding $60 billion by 2026. It will have over 350 million sq ft of ready commercial office stock. Among the top seven cities, Mumbai leads the potential SM REIT ready completed stock with 75 million sq ft as of June 2024. Presently, total completed office stock in India surpasses 800 million sq ft with REIT-listed office inventory at over 88 million square feet.
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.