Development Watch – Week #1 Oct ’24

Development News

---

Need to strengthen local bodies: CAG

The Comptroller and Auditor General (CAG) of India has called for bolstering local bodies, arguing that all round development at the grass root level is a prerequisite for turning India into a developed India by 2047. He has urged enhancements in rural governance and resources. At Local Governance Synergy Conclave, the CAG said it is important to strengthen government accounting at municipal levels. India has about 2.6 Lakh Panchayats and 7,000 urban local bodies. A collaboration with CAG would also help in improving municipal accounting and auditing practices.

“Model Gaon” project for Rural Development

There is a need for village development and women’s empowerment in line with the initiative of “Model Gaon”. The project is inspired by successful experiments conducted in Banda District, UP. It focuses on 3 key aspects: defining development through a village manifesto, identifying local change makers, and transforming agriculture into a profitable business. There are more than 6.5 Lakh villages in India. The Model Gaon project is a non-profit initiative which originates in 18-month tenure of the DM in Banda. Several innovative initiatives led to significant improvements in water conservation, agriculture and overall development. One of the most notable achievement was raising water table by 1.34 metres in the water-stressed district.

India’s Office leasing at a high due to GCCs

India’s office property market is experiencing a record-breaking wave of net absorption, underscoring the robust demand for commercial spaces across the country indicating the resilience and expansion efforts of both global and domestic corporates. Global Capability Centres (GCCs) remained the dominant occupier group, driving 36.2% of all leasing activity. As a result, global occupiers continue to drive the market with a 56.8% share during the quarter. The trend has held steady throughout the first nine months of 2024, with BFSI, manufacturing/engineering, and tech sectors showing comparable shares in GCC space take-up. This signals a growing demand for advanced R&D and innovation work across the board. With Karnataka’s new GCC Policy offering incentives and other states likely to follow suit, the market is poised for a significant boost to the ecosystem.

“All energy Generation will be Solar”

Tesla Founder Elon Musk has advocated in favour of solar energy. As per Kardashev Scale, it becomes utterly obvious that essentially all energy generation will be solar. The Kardashev Scale is a method of measuring a civilization’s level of technological advancement based on the amount of energy it is capable of harnessing and using. The measure was proposed by Soviet astronomer Nikolai Kardashev (1932–2019) and was named after him, according to Wikipedia. Musk stated that mathematical calculations prove how solar energy in a small area can power the entire U.S. One square mile on the surface receives ~2.5 Gigawatts of solar energy. That’s Gigawatts with a ‘G.’ It’s ~30% higher in space. The Starlink global satellite network is entirely solar/battery powered,”. “Factoring in solar panel efficiency (25%), packing density (80%), and usable daylight hours (~6), a reasonable rule of thumb is 3 GWh of energy per square mile per day.

Rs. 10,900 Crore EV Subsidy Scheme

The government has introduced the PM E-DRIVE scheme with an outlay of Rs. 10,900 crore, effective from October 2024 to March 2026. This initiative aims to accelerate electric vehicle adoption by offering subsidies and grants for EVs and charging infrastructure. State governments are encouraged to provide additional fiscal and non-fiscal incentives. This scheme will also absorb the ongoing Electric Mobility Promotion Scheme (EMPS), 2024. The number of vehicles and the expenditure under EMPS, 2024 is subsumed under the PM E-DRIVE Scheme. PM E-DRIVE offers subsidies for electric two, and three wheelers, e-ambulances, e-trucks and ‘other new emerging EV categories.’ There will also be grants for creation of capital assets such as e-buses, establishment of network of charging stations and upgradation of testing agencies identified under this scheme.

RE to have 50% share by 2030

The Reserve Bank of India reports that fossil fuels’ dominance in India’s electricity generation will end by the decade’s close. Renewable energy is expected to surpass 50% globally. The RBI emphasizes the need for tripling renewable investments to meet net-zero targets and highlights the importance of addressing sectors like steelmaking and aviation. Energy transition has accelerated in recent years, with the pace of clean technology deployment and capital investment surging to record levels. for every dollar invested in fossil fuels, an average of three dollars needs to be allocated to renewable energy in the coming years, a substantial increase from the current ratio, where both sectors receive equal investment. A tripling of renewable energy capacity by 2030 is seen as essential to meeting net-zero emission targets by mid-century. A fully decarbonized global energy system by 2050 will come at an estimated cost of USD 215 trillion

Maize investment in Bihar due to Ethanol boom

Bihar Agriculture Minister Mangal Pandey on Wednesday called for private sector investment in hybrid maize seed production and warehouse facilities amid increased local production. Addressing a FICCI-organized maize summit, Pandey announced Bihar’s ambitious target to cultivate maize on a record 10 lakh hectares this year. As India’s fifth-largest maize producer, the state is witnessing a shift in farmer preferences towards maize cultivation due to attractive market prices surpassing the minimum support price (MSP). The minister also emphasized the need for enhanced warehouse facilities, despite improvements in transportation infrastructure. The state’s ethanol production capacity is set to reach 8.09 lakh kilo litres annually by year-end, with 15 plants expected to be operational. This expansion will require about 23.38 lakh tonnes of maize per annum, further boosting demand for the crop.

Germany audit of Indian Hydrogen Trains

India’s first hydrogen train will undergo trial runs in December 2024, with German firm TUV-SUD conducting a safety audit. The Indian Railways plans to introduce 35 hydrogen trains under the Hydrogen for Heritage initiative. It has an estimated cost of Rs. 80 crores per train with another Rs 70 crores investment in ground infrastructure per route on various heritage or hilly routes. Another five hydrogen fuel cell-based maintenance vehicles are being developed at Rs 10 crore each. With this, India will become the fifth country in the world, after Germany, France, Sweden, and China, to operate Hydrogen powered trains. Another pilot project for retro-fitment of Hydrogen Fuel cell on existing Diesel Electric Multiple Unit (DEMU) rake, along with ground infrastructure, is also underway.

5 year Cruise Bharat Mission

India launched the Cruise Bharat Mission to expand cruise tourism over five years, planning 10 sea cruise terminals, 100 river cruise terminals, and five marinas. It aims to double cruise calls and passengers, enhance regional alliances, and increase sea and river cruise passengers significantly by 2029, propelling tourism and connectivity across the subcontinent. The centre also aims to establish Cruise Alliances with neighbouring countries such as UAE, Male, Maldives, Singapore, Malaysia, Thailand, Myanmar, Bangladesh, and Indonesia among others. the mission is divided into three phases till 2029. The key performance target includes increasing sea cruise passengers from 0.5 million in Phase 1 to 1 million by Phase 3.

The mission targets three key cruise segments. These are the Ocean & Harbour Cruise segment which encompasses ocean cruises, including deep-sea and coastal cruises, along with harbour-based yachting and sailing cruises. The River and Inland Cruise segment focuses on river and inland cruises on canals, backwaters, creeks, and lakes. The Island Cruise segment highlights inter-island cruises, lighthouse tours, live-aboard experiences, expedition cruises, and boutique cruises to lesser-known destinations.

---