Development Watch – Week #4 Nov ’24
Development News
Cottage and Rural Industries Policy for Gujarat
Gujarat State government announced its new cottage and rural industries policy. This would offer higher loans and subsidies to artisans and entrepreneurs to set up units in the state. It would facilitate the creation of nearly 12 lakh jobs in 5 years. “New Cottagae Policy 2024” will remain effective for 5 years, and will aim to develop a self-sustaining cottage industry sector and open doors for local and international market for artisans. The state will work towards availability of credit and market support to artisans. It will also focus on infrastructure, skill, technology upgrades and innovation. To encourage new industries and businesses, maximum loan amount has been increased to Rs. 25 lakh from Rs. 8 lakh.
15th Finance Commission Grant for Rural Local Bodies in Karnataka
The Union government has disbursed the first portion of the 15th Finance Commission grants for the fiscal year 2024-25 to rural local bodies in Karnataka. The grants can be used for the basic services of sanitation and maintenance of ODF status. This should include management and treatment of household waste, and human excreta and fecal sludge management in particular, and supply of drinking water, rainwater harvesting and water recycling. The Government of India, through the Ministry of Panchayati Raj and Ministry of Jal Shakti recommends release of XV-FC grants to the Rural Local Bodies, which are then released by the Ministry of Finance. Allocated grants are recommended in 2 instalments in a FY. The grants will be utilized by the RLBs for location-specific requirements under the 29 subjects enshrined in the 11th Schedule of the Constitution, except for salaries and other establishment costs.
Domestic solar installations surge 167% to 16 GW
India added 16.4 GW of solar capacity during January-September 2024, posting a 167% YoY rise on account of commissioning of delayed projects. Solar installations accounted for nearly 20% of India’s installed power capacity. Over 44% of total installed renewable energy capacity. As per the report, the solar installations in July-September period rose of 78% to 3.5 GW from 2 GW in 3rd quarter of 2023. As of September 2024, India’s cumulative installed solar capacity stood at 89 GW, of which utility-scale projects accounted for more than 86%. Rooftop solar accounted for almost 14% of cumulative installations.
Drone manufacturing unit to be setup in Bihar
AVPL International will be setting up a drone manufacturing facility in Bihar, with an investment of Rs. 15 Crores. The new facility will be set up in an area of 16,000 sq ft in Bihta Industrial Area. It will have capacity to produce up to 24,000 drones annually. This would create approximately 10,000 jobs, including 200 in-house positions. The initiative aims to boost local communities and encourage drone entrepreneurship. Founded in 2016, AVPL International has expanded its reach to over 12 states, and established over 70 skill and incubation hubs.
Changing the definition of Affordable Housing
India’s real estate sector is projected to reach $4.8 trillion by 2047. The Confederation of Real Estate Developers’ Associations of India (CREDAI) proposes increasing the affordable housing threshold to Rs 90 lakh. They have urged the government for strategic reforms and policy interventions. This would include changing the definition of affordable housing and input tax credit. CREDAI also suggested flexible GST options for developers. The industry body emphasizes the need for streamlined land acquisition policies and planned satellite towns. According to a joint report by CREDAI and Ernst & Young, as a sector, PropTech is expected to grow significantly, reaching $600 billion by 2047.
Railways recruited 5 lakh employees in 10 years
Railway Minister announced that Indian Railways recruited five lakh employees in the past decade, surpassing the previous decade’s 4.4 lakh recruitments. He highlighted the introduction of an annual recruitment calendar for the first time in Railways’ history. The minister mentioned the production of 12,000 general coaches during a national convention in Nagpur.
Changes in domestic and global shipping
India will soon introduce two new shipping bills for consideration and passing during the winter session of the parliament. The Merchant Shipping Bill 2024 and Coastal Shipping Bill, 2024. These aim to grow coastal shipping and ease regulations. The bills address international obligations and domestic trade aspects. They will help integrate coastal and inland waterways. The government wants to increase India’s coastal shipping share. New provisions under Coastal Shipping Bill also support abandoned seafarers and simplify ship registration. The Merchant Shipping Bill deals with implementation of India’s obligations under various International Conventions, and technical aspects of maritime and shipping sector regulations.
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.