Development Watch – Week #2 Nov ’24
Development News
Drop in Calorie intake affects 80% Rurals
Over 80% of India’s rural population now consumes less than 2,200 calories daily. This signifies a decline in food and nutrition intake since 1990s. The accepted average calorie requirement in India is 2,400 calories per day in rural areas and 2,100 calories in urban areas. Economist Utsa Patnaik has stated the data through a lecture on the topic “Agrarian Distress, Worker-Peasant Alliance and Resistance to Corporate and Imperialist Designs in India. The Economist has highlighted the impact of neoliberal policies and international trade agreements on India’s agricultural sector. She also criticized the government’s data reliability and the undermining of support systems for farmers.
Solar Capacity reaches 2 Tera Watts globally
Global Solar Capacity has hit a new high of 2 Tera Watts, doubling in just two years. This has been the fastest growth period ever recorded. The surge is fueled by both large scale installations and smaller rooftop systems, which provides enough energy to power 92 million American homes. Nearly 60% of the 2 TW deployed comes from ground-mounted solar farms, while rooftop projects make up to 40% of the total, as per data published by Global Solar Council. In many cases, small rooftop projects are not registered anywhere and are often not recorded in the government data. The Global Solar Council will launch an International Solar Finance Group at next round of UN talks at COP-29 in Baku. The council wants to connect funds, multilateral banks, private finance and international institutions to drive down the cost of capital in emerging and developing economies, from 5% to 15%.
India’s solar manufacturing ecosystem to develop in 4-5 years
India will develop the complete ecosystem of solar equipment manufacturing in the next 4-5 years compared to other countries, which took over 20 years. The ambitious goal aims to reduce reliance on imports and establish India as a renewable energy leader. Indian companies are dependent on other countries for solar energy components, which are hindering abilities of Indian solar companies. Indian companies like Avaada Group are setting up a campus where one can insert a wafer at one end of the factory and the solar panel will be coming out on the other side. This would be a game-changer in India’s renewable energy sector. Avaada is already using grey methanol in the North East to run cars. Methanol is the best solution for heavy transport, car transport and green ammonia for fertilizers. There is a need for long-term government support through mandates and off-take contracts for future development in Hydrogen energy sector.
India’s first dedicated Railway Test Track in Rajasthan
India is constructing its first dedicated Railway Test Track in Rajasthan for testing rolling stock, including bullet trains. The 60 km track, costing Rs. 820 Crores, features curves, bridges and loops for comprehensive testing of speed, stability, and safety parameters. After the completion of the first phase, bullet trains can also be tested at a speed of 230 kmph. The 60 km track will be an RDSO dedicated test track of 60 km between Gudha-Thathana Mithdi in Nawa of Jodhpur Division, in Deedwana district of Rajasthan. The railway track has been drawn from the middle of the Sambhar Lake, which is about 80 km from Jaipur. The complete track includes 7 big bridges, 129 small bridges and 4 stations. 27 out of 60 km has been completed, with remaining to be done by December 2025. It also includes testing of track material, bridges, TRD equipment, signalling gear and geotechnical studies. Bridges have been built using a turn-out system to make them vibration-resistant.
Private jet carbon emission up by 46%
Carbon emissions from private airplanes could have increased by 46% between 2019-2023. Regular private jet flyers are possibly emitting 500 times more in a year than people using commercial flights. Researchers from Sweden’s Linnaeus University also found that significant peaks in emissions are seen around specific international events, such as COP28 and 2022 FIFA World Cup, as big volume of private jets are operated. 6 countries accounted for more than 80% of private aircrafts around the world – the US, where nearly 70% of all private aircrafts are registered. This is followed by Brazil (2.9%), Canada, Germany (2.4%), Mexico and the UK. Cutting down green house gas emissions is considered critical for limiting global warming to 1.5-2 degrees Celsius.
India leads APAC office leasing
India is leading the APAC office market activity, driving over 70% of the total demand during Q3 2024. The APAC office market is expected to witness growth in 2025. Demand for office spaces surged in 3rd Quarter of 2024. India dominated the market, accounting for over 70% of the total office demand. Bengaluru and Hyderabad led the demand in India. Rental rates are projected to rise due to robust demand. The Indian market recorded 17.3 million square feet in office leasing for the region. The uptake of Grade A office space within India was predominantly driven by Bengaluru and Hyderabad, which accounted for over half the demand.
Delhi Master Plan to offer 50,000 Cr opportunity for industries
The Delhi Master Plan 2041, awaiting government approval, is projected to generate significant economic growth. The plan aims to create 500,000 jobs. It will also attract substantial investment in sectors like healthcare, pharma and IT. Experts have emphasized the urgency of its implementation to unlock Delhi’s potential as a leading service hub, and address challenges like unauthorized colonies. Delhi is home to about 10,000 unauthorized colonies, which is a substantial figure among global capitals. The delay in approval of the master plan has led to mushrooming of illegal farmhouses in Delhi.
RE investment to touch 3.1 Trillion by 2024
Global renewable energy investments are poised for a significant surge, projected to reach $3.1 Trillion by 2024. The solar sector dominates these investments, driven by failing costs and Asia Pacific region’s leadership.. This growth is fueled by remarkable advancements in solar technology, making it increasingly efficient and affordable. The World Solar Market Report said exceptional growth was witnessed in solar, with global capacity soaring from 1.22 GW in 2000, to 1,418.97 GW in 2023. There is a global shift towards sustainable energy investments from $2.4 Trillion in 2018 to $ 3.1 Trillion by 2024. The Report was released by MNRE at the ongoing assembly of International Solar Alliance in New Delhi.
ASSET Platform to help help States’ green energy transition
The ASSET platform (Accelerating Sustainable Solutions for Energy Transition) was launched in collaboration with the Ministry of Power and with Ministry of new and Renewable Energy. The platform will assist in formulating state energy blueprints along with aiding in its implementation. It will also help prepare a pipeline of bankable projects, showcasing best practices across states as well as upcoming technology, and innovations in critical sectors like BESS, green hydrogen, energy efficiency, e-mobility, offshore wind, etc.
NITI Aayog funding mechanisms for RE growth
The Indian government is considering granting infrastructure status to the entire shipping sector. This move would provide the industry with access to financial assistance and concessions, boosting the indigenous shipping industry. The finance ministry is currently consulting with banks and financial institutions such as National Bank for Financing Infrastructure and Development (NBFID) before a final decision is made. While the infra tag has been sought only for coastal vessels, the finance ministry is examining a proposal for a wider coverage. The proposed changes will lead to a more comprehensive maritime policy, including shipbuilding and maritime development fund. These measures will lead to low-cost long-tenure loans. Government is also looking to build multiple shipbuilding clusters in 5 states, including Gujarat, Andhra Pradesh and Maharashtra.
Accountability, Fair Financing and Green Credits at COP29
India is advocating for accountability, green credit, fair financing and incremental goals at COP-29 in Baku. India is urging developed countries to fulfill climate pledges and provide transparent climate finance. While pushing for an equitable energy transition, India is prioritizing the needs of its developing economy and vulnerable communities. The 29th session of the climate change conference of parties (COP-29) is being held from November 11-22 in Baku, the capital of Azerbaijan. Another focus area for India would be to promote green credit and the LiFe (Lifestyle for Environment) philosophy towards sustainability. In a departure from past conferences, India will not host a pavilion at COP-29.
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.