Development Watch – Week #3 Oct ’24
Development News
Tata Powers to supply turbines with 3 GW capacity
Renewable energy company Tata Power is seeking bids for the supply of wind turbines with a capacity of over 3 gigawatts (GW) to be installed at its wind-solar hybrid renewable energy facilities across the country over the next three to five years, said people aware of the development. The value could exceed ₹21,000 crore and is among the largest wind turbine orders ever, the people said. Currently, the cost of setting up 1MW of wind energy is around ₹7 crore. Four large original equipment manufacturers for wind turbines, including Siemens Gamesa, Senvion India, Envision Energy and Suzlon Energy, are in the race to bid and supply the turbines to Tata Power. The bids will be broken into multiple contracts, sources said, adding that the final requirement could be nearly 5GW over five years, adding up to a contract value of ₹35,000 crore.
India to become exporter of solar modules by 2029
India is set to become a significant player in the global solar module market by exporting solar modules to other countries by 2029, according to a report by CRISIL. As the domestic production of solar modules is expected to increase, India could begin exporting these modules to other countries in the near future. The report emphasized that India has the potential to become a global leader in solar module manufacturing, supported by a large pool of skilled labor, a growing manufacturing ecosystem, and abundant access to raw materials. the Indian government has introduced several policies aimed at boosting the domestic solar industry. As a result, the report projected that the country’s solar module manufacturing capacity is projected to reach approximately 125 GW by fiscal 2029.
BEML to build India’s first bullet train
State-owned BEML will build India’s first indigenously manufactured bullet trains for Rs 866.87 crore. In a statement to the exchanges, BEML said it has been awarded a contract for design, manufacturing, and commissioning two high-speed trainsets. Each train will have eight cars (coaches) in this order placed by Indian Railways production unit, Integral Coach Factory (ICF), Chennai. BEML said these trains will be priced at Rs 27.86 crore per coach. The total contract value includes design cost, one-time development cost, non-recurring charges, onetime cost towards Jigs, fixtures, tooling and testing facilities. The Railway Board was earlier relying on Japanese technology for the bullet trains to run on the line between Ahmedabad to Mumbai that’s being built. But India may now opt for indigenously developed trains for this route since talks with the Japanese are yet to reach finality.
$1 billion investment from ME SFs in Airports
Mumbai: The Adani Group is in advanced talks with a Middle Eastern sovereign fund to raise up to $1 billion for its airports business. The fundraising parleys come as group flagship Adani Enterprises launched a qualified institutional placement (QIP) on Wednesday to raise up to ₹4,200 crore ($500 million), lower than the initial target amid volatile markets globally. Adani Enterprises, which houses the group’s airports, roads and data centre businesses, among others, has planned a capex of ₹80,000 crore for the current fiscal.
India’s $2 billion plan for green boats
India is set to offer up to $2 billions in incentives to replace fossil fuel powered passenger vessels on inland waterways with a cleaner fleet. This includes barges, ferries. The initiative proposed by the Shipping Ministry earlier this year will be backed by $1.8 billion in subsidies over ten years and is currently awaiting approval from Finance Ministry. India is working to decarbonize its maritime sector with a slew of measures, including setting up green ports and introducing less polluting ships. It’s now targeting the small but growing inland shipping segment, which is set to double its 10,000 fleet by 2030.
Road Projects worth Rs. 2,200 Crores in 4 states
Minister Nitin Gadkari has sanctioned significant funds for road infrastructure projects, including Rs 809.77 crore for NH 63 in Maharashtra, Rs 400 crore for state roads in Andhra Pradesh, Rs 516 crore for a bypass in Telangana, and Rs 557 crore for NH 748 in Goa, aiming to boost connectivity and reduce congestion. Following are the projects statewise:
- Maharashtra – rehabilitation and upgradation of 2-lane along with paved shoulder on National Highway 63. Will boost agri-business activities and serve as important link between mineral-rich Marathwada and parts of Telangana.
- Andhra Pradesh – Development of 13 state roads under CRIF scheme. Construction of 4 lane road over bridge on railway section in Guntur
- Telangana – 14km 4 lane bypass for Nalgonda
- Goa – 4 lane stretch between Ponda to Bhoma on NH 748 to be executed in EPC mode.
4% Decline in Private Equity Investment
Private Equity investments in real estate witnessed a 4% decline in the 1st half of FY-25, due to reduced investments in the offices sector. Total number of deals also declined from 24 in FY-24 to 17 in first-half of FY-25. Private equity investments in offices are primarily driven by foreign investors, which have tapered down due to global factors such as geopolitical tensions and elevated interest rates. However, the aggregate numbers and the dominance of foreign investors in Indian real estate remained largely stable due to the ADIA/KKR investment in the Reliance Retail warehousing assets.
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.