Development Watch – Week #2 Dec’24

Development News

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Electric Highway between Delhi and Jaipur

The government is planning to build an electric highway from Delhi to Jaipur. An electric highway is a network of roads or highways equipped with charging infrastructure designed specifically for electric vehicles (EVs). These highways typically feature charging stations or systems along the route to make long-distance travel more convenient for electric vehicle owners. The project is slated to roll out over the next seven years, with the goal of accelerating the adoption of electric mobility and facilitating the deployment of electric buses nationwide. These e-highways will feature green energy-powered charging infrastructure. Last year, electric car sales reached 83,000 units, falling short of the target of 100,000. Many first-time buyers have been hesitant to choose electric vehicles as their primary mode of transport, largely due to concerns about range and the insufficient charging infrastructure in the country. As a result, consumers have tended to view EVs more as a secondary or tertiary option rather than their main vehicle.

Growth in Shipping Sector in India

Shipping lines are adding capacity to support India’s export growth. Multinationals such as Maersk-Hapag-Lloyd’s Gemini Cooperation, MSC and CMA CGM have launched new routes and are upgrading services. Expansion is expected to boost trade efficiency, reduce freight costs and turnaround times. Merchandise export growth reached 17% year-on-year in October, with total exports projected to hit $435 billion this fiscal year. Starting February, Maersk and Hapag-Lloyd will introduce three dedicated and eight to nine shuttle routes under their Gemini network, while MSC plans a Mediterranean-Asia route linking Mediterranean ports to North India and Colombo. Globally, logistics dynamics are shifting. With China slowing down, shipping lines are being prompted to expand their routes and frequency in India. The India-EU trade lane, which accounts for a quarter of India’s foreign trade, will see significant improvements.

First test flight at Noida airport to open in 2025

The Noida International Airport Limited (NIAL) on Monday conducted the first flight validation test for Noida International Airport ahead of the airport’s commercial opening on April 17 next year. An IndiGo passenger flight, with a full crew and staff from the Airports Authority of India (AAI), carried out the crucial trial run. Validation flights — also called proving flights — are integral to the certification process, ensuring compliance with safety, reliability, and operational standards. As part of the DGCA manual, these flights simulate real-world operations to evaluate compatibility of the airport’s infrastructure, procedure, and systems with regulatory requirements. Initial discussions indicate that the first international flights from Noida airport are likely to be bound for Singapore, Dubai, and Zurich. On the domestic front, the airport will link Noida with major cities such as Mumbai, Bengaluru, Lucknow, Hyderabad, Dehradun, and Hubli.

Hyperloop test track at IIT Madras

IIT Madras has completed a 410-meter Hyperloop test track, marking a milestone in India’s venture into ultra-modern transport systems. The project is being developed by IIT Madras’s Avishkar Hyperloop team in collaboration with TuTr, a startup incubated at the institute. The Hyperloop concept was first popularized by Elon Musk in 2012. Avishkar Hyperloop team comprises 76 undergraduate and postgraduate students from IIT Madras. The technology will be introduced in two phases. The first phase will include an 11.5-kilometer test track to demonstrate and certify the technology. Upon successful testing, the second phase will extend the track to cover approximately 100 kilometers. Hyperloop trains are designed for speeds up to 1,100 kmph, with an operational speed of around 360 kmph. The trains will move in a frictionless, vacuum-sealed environment, enabling faster travel and energy efficiency. Pods, functioning as pressurized vehicles, move at extraordinary speeds through low-pressure tubes. Each pod can carry 24-28 passengers directly between destinations without intermediate stops, making it a promising solution for efficient, point-to-point travel. The Mumbai-Pune corridor is expected to be the first full-scale Hyperloop project in India. The railway system aims to reduce travel time between the two cities to just 25 minutes.

Lok Sabha passes Railway (Amendment) Bill, 2024

The Lok Sabha passed the Railways (Amendment) Bill, 2024 during the Winter Session of the Parliament. The amendment primarily grants statutory powers to the Railway Board and was introduced by the Union Railways Minister on 9 August. The Bill was amended to add provisions granting the Central government authority to determine the composition of the Railway Board, including the number of members, their qualifications, experience, and terms of service. It is aimed at enhancing the overall functioning and independence of the Railway Board. It now empowers the Centre to approve the operation, expansion, or rerouting of superfast trains through Thawe Junction in Bihar. The amendment was aimed at addressing the lack of direct train connections between Thawe Junction and major cities like Delhi, which is crucial for local people, including migrant workers and pilgrims. The current Bill proposes to simplify the legal framework by incorporating the proposals of the Indian Railway Board Act, 1905 in the Railways Act, 1989. This will reduce the need to refer to two laws.

Need to build dense cities in India

Addressing a session on urban planning at the Global Economic Policy Forum 2024, Organized by Confederation of Indian Industry (CII), Mr. Sanjeev Sanyal, who is a member of Economic Advisory Council to the PM (EAC-PM), called for a bottom up approach to design new cities. He emphasized the need to upgrade existing ones so that Indian cities are sustainable, liveable and economically viable. It requires a bottom up approach rather than top down. He cited Chandigarh as an economically unviable city. Chandigarh occupies a huge amount of land to essentially house a very small number of people. he suggested Indian urban planners need to build denser cities which pay taxes, monetize land and do not occupy more farmland and forest land.

It’s actually cheaper to run these denser cities as well. You need fewer kilometers of metro lines, fewer kilometers or wires and other things when you are going vertical. Bengaluru’s growth as a tech hub is creating opportunities in smaller Indian cities. Global capability centers are expanding to new locations. These cities offer lower costs and skilled workers. Companies seek to reduce expenses and access talent. This shift benefits both businesses and emerging tech hubs. The government is also supporting this trend with new policies.

Rural investment needed for Economic growth

There is a need for transformative growth in rural India, particularly in financial infrastructure and entrepreneurial spirit. She emphasized fostering rural entrepreneurship by connecting rural products with urban markets through platforms like quick commerce to boost economic growth. There is particular transformation in areas of financial infrastructure and in entrepreneurial spirit and by connecting rural products to urban markets. The BMW Group and UNICEF on Wednesday announced a partnership in India with an aim to transform the educational landscape for 1 lakh children in four states. The partners would focus on foundational learning and STEM (science, technology, engineering and maths) skills from early years through adolescence.

Rural India records 10% rise in Literacy

In the past decade, rural India has seen a 10 percent jump in literacy, with women leading the charge, according to the latest government data. This achievement underscores the impact of targeted education programmes and policies, even as efforts continue to bridge gaps and ensure equitable access to quality education. rural India’s literacy rate rose from 67.77 per cent in 2011 to 77.50 per cent in 2023-24 among individuals aged seven and above. Female literacy improved from 57.93 per cent to 70.4 per cent, while male literacy increased from 77.15 per cent to 84.7 per cent. the Government of India has launched several Centrally Sponsored Schemes/Programmes over time, such as the Samagra Shiksha Abhiyan (2018-19 to 2025-26), Saakshar Bharat (2009-10 to 2017-18), Padhna Likhna Abhiyan (2020-21 to 2021-22), and ULLAS-Nav Bharat Saaksharta Karyakram/NILP (2022-23 to 2026-27).

India-Russia collaboration on Railways

India and Russia are set to enter a pact on rail manufacturing soon. Russia is set to invest in Indian train and component manufacturing to meet some of its own requirements. Russian railway company TMH has shared an expression of interest. They have huge domestic requirements and for that they want to set up manufacturing facilities here. They want to get these supplies from India. TMH is the majority stakeholder in Kinet Railway Solutions, which holds a Rs 55,000 crore contract with Indian Railways. This contract covers the production and 35-year maintenance of 1,920 Vande Bharat sleeper coaches. The current sanctions on Russia will not impact the project.

Green Hydrogen production and Investment in EVs

Fourteen companies, including Reliance and ReNew, have submitted bids for India’s green hydrogen transition scheme. The bids total 450,000 tonnes of capacity, vying for a maximum of Rs 5,400 crore in incentives over three years. The scheme aims to boost domestic green hydrogen production and electrolyser manufacturing. The maximum benefits available under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme (Mode-1-Tranche-II) is Rs 5,400 crore. India had launched the National Green Hydrogen Mission with an initial outlay of Rs 19,744 crore in January 2023.

India also anticipates $40 billion in EV investments over the next 5-6 years, focusing on lithium-ion batteries and domestic manufacturing. This surge in investment, despite slower EV adoption, is expected to create significant real estate opportunities. This includes land for manufacturing and charging infrastructure development, potentially exceeding 45 million sq ft by 2030. Some of the large investments announced includes Reliance New Energy’s lithium iron plant in Gujarat, JSW Green Mobility’s EV manufacturing unit in Maharashtra, Hyundai’s investments in various EV related segments in Karnataka.

Government to stress upon Utilities to go Green

India’s wind power sector seeks government support to achieve 110 GW capacity by 2030. The industry proposes stronger renewable energy purchase obligations and extended transmission fee waivers. Over 30 GW of wind projects await power purchase agreements. Faster transmission line development is crucial. The sector added 3,253 MW in FY24, up from 1,110 MW in FY22. There is a need for enforcement of amendment in the Energy Conservation Act for renewable purchase obligation (RPO) targets and an extension of waiver of inter-state transmission systems (ISTS) charges for all renewable energy, except offshore wind till 2030. Lately, Serentica Renewables is investing ₹50,000 crore to develop 10,000 MW of renewable energy capacity in Rajasthan. This investment will support the construction of 3,000 MW of capacity currently underway and add to the existing 400 MW already operational, furthering Rajasthan’s clean energy transition and boosting its economic growth.

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