Development Watch – Week #5 Oct ’24

Development News

---

Tata Power & IndusInd partner for solar financing

Tata Power Renewable Energy Ltd. has partnered with IndusInd Bank to offer financing options to Micro and Small Enterprises (MSEs) for solar installations. This alliance will provide collateral-free solar financing by offering loans from Rs. 10 Lakh to Rs. 2 Crores. These loans, contingent on the bank’s credit approval, require a 20% margin and come with competitive interest rates. They offer terms up to 7 years. It will help MSEs reduce operational costs and also actively contribute to the green energy transition. Likewise, Solex Energy is also partnering with State Bank of India to offer solar financing options up to Rs. 10 Crores to commercial, industrial and institutional customers.

AI Power demand good for the climate?

Skyrocketing electricity demand from data centres – and the need to build more power sources to meet it – will end up being good for the climate. Big energy companies argue that the rising electricity demand from data centres can drive investment in clean energy, despite the skepticism. They claim that the increased need offers financial incentives to advance new technologies. Utility executives also highlight potential cost reductions and improved grid reliability. In the US, the demand for electricity is expected to jump by as much as 15% in some regions over the next five years. The increased demand is driven by electrification of the economy, along with new factories and the rise of power-hungry data centres that support AI. Rising power demand has already delayed some coal-plant closures and sparked a plan for the buildout of natural gas-fired plants, which usually have a 40-year lifespan.

Revamp of Beatles Ashram in Rishikesh

The well-known Chaurasi Kutiya (84 huts) Ashram is set to be renovated by HCP DPM, the architecture firm based in Gujarat. This is the Ashram where the British band ‘The Beatles’ practiced yoga, wrote and composed songs in 1968. The band’s stay was said to be most productive period for their songwriting and they penned more than 30 songs. The Ashram is located inside Rajaji National Park near Rishikesh town. The Uttarakhand government has awarded HCP DPM to renovate the Ashram, originally established by Maharishi Mahesh Yogi in 1961 on 7.5 hectares of forest land as a meditation centre. the renovation, with an estimated cost of Rs. 90 Crores, would commence by the end of 2024. It may take a year and a half to be completed.

L&T gets order for global nuclear fusion project

L&T has bagged a significant order from global body ITER Organization for the deployment of advanced welding technologies at its nuclear fusion project in France. The ‘significant’ orders are usually valued between Rs. 1,000-2,500 Crores. ITER is an inter-governmental body headquartered in France. Member countries include India, the EU, The order incorporates deployment of critical advanced technologies for assembly of ports and complex parts with the world’s largest nuclear fusion project at Cadarache in Southern France. L&T has also inked a pact with ITER organization for technical collaboration on the project. Under the MoU, L&T will help ITER in developing technology for the hardware and assembly of fusion-relevant systems inside the vacuum vessel of ITER Tokamak to control the plasma operation.

NBCC’s 10,000 Crores redevelopment project in Goa

NBCC is undertaking redevelopment projects in Goa worth Rs. 10,000 Crores, starting with 6 projects valued at Rs. 1,700 Crores. These projects are focused on commercial, residential, and administrative spaces. They aim to revitalize underutilized areas without budgetary support from Goa government. The set of 6 projects are planned under the first phase.

New Railway projects and Space sector VC fund

The Union cabinet has approved railway projects worth Rs. 6,798 Crores, and a Space Sector Venture Capital (VC) fund of Rs. 1,000 Crores. These railway projects include doubling of Narkatiaganj-Raxaul-Sitamarhi-Darbhanga, and Sitamarhi-Muzffarpur Section in North Bihar. The section covers 256 km. The second project involves construction of a new line between Errupalem and Namburu through Amaravati (Andhra Pradesh), covering 57 kms. The two new lines would improve both freight traffic and direct connectivity. The proposed Venture Capital space fund worth Rs. 1,000 Crores will support space sector startups through equity infusion or Compulsory Convertible Debentures (CCD) over the 5 years.

Features of upcoming Vande Bharat Sleeper Express

The Indian Railways will test the first prototype of the Vande Bharat Sleeper train in November. The new train model aims to enhance overnight premium travel with better speed, comfort and safety compared to existing Rajdhani Express. It has improved berths with cushioning, automatic doors, bio-vacuum toilets and advanced fire safety standards. It also aims to provide a smoother ride and reduce travel times due to faster acceleration and deceleration, compared to existing Rajdhani express. Vande Bharat can reach speeds of up to 160 kmph. The self-propelled train will not require a locomotive and will have driver cabins at both ends (just like metros) to reduce turnaround time at stations. The side walls, roofs, end walls, floor sheets and cab will be made of austenitic steel for better durability. Superior safety measures incorporate crash buffers, deformation tubes, fire barrier wall conforming to EN-45545 HL3. Vande Bharat sleeper will have 16 coaches – one AC 1st class, four AC 2-tier coaches, 11 AC 3-tier coaches, and can carry 823 passengers.

Airbus to have 5,000 direct employees in India

Airbus expects to have more than 5,000 people as direct employees in India. It also aims to source services and components worth USD $2 billion in next couple of years. Currently, airbus employs around 3,500 people in India. New Delhi has the India and South Asia HQ – Training Centre. Airbus will also be setting up a 2nd pilot training centre through a joint venture with Air India. It will be investing to develop a 5,000-seater Airbus campus in Bengaluru. Airbus Defence and Space has also initiated manufacturing partnerships with Tata Group and C295 military aircrafts and H125 helicopters. Airbus also supports the commercialization of the first ‘Made in India’ Sustainable Aviation Fuel (SAF). It will also work on modernization of Indian Air Force through medium transport aircraft programme to completely industrialize the A400M in India.

Northeast’s first ship repair facility

The Union Minister of Ports, Shipping & Waterways (MoPSW) visited the Pandu Port Complex to review the ongoing construction activities at NE’s first ship repair facility, as well as elevated road corridor. Inland Waterways Authority of India (IWAI) is the nodal agency for development of waterways in the country. The 10 projects are being developed along the Brahmaputra – National Waterways 2 with an investment of Rs. 645 Crores. Apart from regular activities like dredging to maintain a Least available Depth (LAD) for smooth passage of ships, vessels and cargo boats, provisions are being made for infrastructure along the river. Slipways are also being created at strategic locations like Majuli and Dhubri. New passenger terminals are being developed at Ghagor in North Lakhimpur and Bahari in Barpeta.

Greater demand for goods in Rural areas

The Monthly Economic Survey for the month of September reveals that volume sales of FMCG shows a continued improvement in rural demand. this is supported by rising 3-wheeler and tractor sales. In contrast, urban demand has slowed, with FMCG sales growth dropping from 10% in Q1 FY-24 to 2.8% in Q1 FY-25. The survey data is revealed by Department of Economic Affairs. Both Auto and Housing sales had declined in September.

---