Development Watch – Week #4 Dec’24
Development News
Rs. 20,000 Crore investment in Vadhvan Port
Switzerland-based Terminal Investment Limited (TIL) has proposed to invest an estimated Rs 20,000 crore for the development of Vadhvan Port and the surrounding ecosystem. The facility, being developed near Dahanu in Palghar district of Maharashtra at an investment of Rs 76,200 crore. It is being developed by Vadhvan Port Project Ltd (VPPL). VPPL is a special purpose vehicle, wherein Jawaharlal Nehru Port Authority (JNPA) holds a 74 per cent stake and Maharashtra Maritime Board owns the remaining 26 per cent. TIL has a diverse portfolio of container terminals, strategically located at key ports on the world’s major shipping routes, providing access to key mature and developing markets.
India and Japan to finalize bullet train design
India and Japan are finalizing the bullet train design for the Mumbai-Ahmedabad High-Speed Rail (MAHSR) Corridor, paving the way for award of tenders. Relevant changes will enable Japan’s Shinkansen – or, bullet – trains to operate in Indian conditions. Modifications include increased luggage capacity, higher temperature tolerance up to 50 degrees, and dust management. Over half of the civil work is complete, and rail laying has begun. India is also developing its own high-speed trains for future corridors. Over 50% of the civil work for MAHSR corridor is complete. Spanning across Gujarat, Maharashtra, and UT of Dadra and Nagar Haveli. The Railway Board has already tasked the Integral Coach Factory (ICF) with manufacturing a bullet train capable of reaching speeds of 280 kmph.
GIFT City receives Data Protection Certification
Gujarat International Finance Tec-City (GIFT City) on Thursday said it has received the ISO 27001 certification. It is a globally recognized benchmark for excellence in information security management systems. The milestone underscores GIFT City’s commitment to safeguard critical information by adhering to internationally acknowledged best practices. By adopting globally benchmarked security protocols, GIFT City ensures the confidentiality, integrity, and availability of critical data, enabling seamless and secure operations for businesses across sectors. The secure environment bolsters GIFT City’s appeal to multinational corporations, startups, and financial institutions seeking a trusted location for cross-border financial services and other operations. GIFT City, India’s first operational smart city and maiden International Financial Services Centre (IFSC), is a global financial and IT services hub.
Ashoka Buildcon’s Green Hydrogen plant for Bihar
Ashoka Buildcon will invest Rs. 9,000 crore in Bihar. The company signed an agreement with the State government. The plant will produce green hydrogen by splitting water. A 1,250 MW solar project will power the plant. The first phase of the plant is being planned in Begusarai. First phase of the project will take 1.5-2 years to commission from the date of receiving all clearances.
NHPC to invest Rs. 5,550 Crores Bihar solar project
NHPC Ltd, India’s largest hydropower company, will invest Rs. 5,500 crore in setting up a 1,000 megawatt solar power project in Bihar. The firm signed an MoU with the state government for the investment at the Bihar Business Connect 2024 investor summit. The project could be set up in 1.5-2 years from the date of land acquisition. The company has almost 7 gigawatts of operational hydropower plants and 9.3 gigawatts of capacity is under construction. NHPC is doing similar projects in Gujarat and other states. NHPC is also proposing to set up a small solar plant, electricity from which would be used to make green hydrogen. The green hydrogen produced will be used to power passenger buses.
More flights and airports to brighten Indian aviation
Mega-mergers and expanding fleets will dominate. New airports will open in Jewar and in Navi Mumbai. However, supply chain woes and pilot fatigue remain concerns. Air India’s merger with Vistara creates a giant. The airline also placed massive aircraft orders. IndiGo expands its international presence. Two new airports will ease congestion as domestic traffic is projected to increase to 165-170 million by March 2025. The long-term focus will be on providing more direct overseas flights, and increasing wide-body aircraft. The fleet of Indian aircrafts has 800 planes and 157 airports. Air India in December announced placing order for 100 Airbus aircrafts. on December 5, Parliament passed The Bharatiya Vayuyan Vidheyak 2024 to replace the 90-year-old Aircraft Act to further improve the ease of doing business in aviation as well as encourage manufacturing of aircraft in India.
Financial credit for Semi-urban, Rural India
Over 50% of Indians reside in semi-urban and rural areas. This demographic segment contributes 25-30% to GDP but faces challenges to achieve financial well-being. While urban centres benefit from robust financial services, semi-urban and rural areas face a shortage of organized financial institutions. This gap forces individuals to rely on unregulated moneylenders who charge 35-60% interest rates. Root causes of such financial disparity include inadequate property records, absence of formal accounting and auditing systems, and high delinquency rates. In terms of microfinance, a reasonable rate is 10% for cost of funds, 5-7% on operating costs, 5% on delinquencies, 3% on return on assets, which would lead to a total of 23-25%. Some strategic solutions include innovative credit models, automation in credit processing, cash-flow based lending, etc.
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.