Development Watch – Week #1 Jan’25
Development News
Panchayati Raj focus on buildings, internet connectivity
Bridging infrastructure gaps in panchayats, the grassroots democratic bodies pivotal to the implementation of government schemes in villages, remained in focus for the Panchayati Raj Ministry in 2024. Funds were sanctioned for the construction of more than 4,000 Panchayat Bhawans. Panchayati Raj Ministry sanctioned funds for the construction of Gram Panchayat (GP) Bhawans in 4,604 locations. Once these buildings are constructed, all GPs having a population of more than 3,000 will have an office of its own. India has over 2.6 lakh GPs, with approximately 65% of its population in rural areas. Of a total of 2,68,938 GPs and Traditional Local Bodies (TLBs), only 2,29,958 have Panchayat Bhawans, leaving a considerable gap. While 2,13,140 panchayats are equipped with computers, several states still lack sufficient digital infrastructure, which could hinder the implementation of e-Governance initiatives and real-time monitoring systems such as eGramSwaraj.
PLI and RE for Green Steel Mission
The government is working on a ₹15,000 crore “Green Steel Mission”. It has components such as the Production Linked Incentive (PLI) for Green Steel, incentivizing renewable energy use and mandating for government bodies to buy green steel, to reduce carbon emissions of the Indian steel industry, according to the year-end note by the steel ministry. The steel industry contributes 10-12% to India’s total emissions. The Steel Ministry is actively engaging with the Ministry of New and Renewable Energy (MoNRE) to decarbonize the steel industry. To reduce India’s dependence on speciality steel imports, the government introduced PLI for speciality steel. Under the PLI for speciality steel participating companies have committed to an investment of ₹ 27,106 crore and an estimated production of 7.90 million tonnes of ‘Specialty Steel’ is expected.
EV, RE sector expectations from 2025
The Indian EV industry witnessed a dip in funding in 2024, dropping to $586 million from $808 million in 2023. However, the number of deals closed remained steady at 44. Subsidies saw changes with the introduction of the PM E-Drive Scheme, which gradually replaces the FAME-II program. Under this scheme, subsidies for electric two-wheelers are now based on battery power, with a fixed rate of 5,000 per kilowatt-hour (kWh) in the first year, capped at Rs 10,000. EV sales in 2024 grew to over 1.9 million units—a 24.5% increase from 1.5 million units in 2023. The coming year will be pivotal, driven by advancements in battery technology, expanding charging infrastructure, and global policy support. A surge in demand is expected for electric three-wheelers and cargo vehicles.
Progress and Challenges on Railway projects
In 2024, Indian Railways saw progress on several projects but faced persistent challenges. While on the one hand the Railway Ministry claimed to have crossed several milestones paving the way for a new era of modernization and progress, on the other, frequent accidents, inadequate manpower and frontline workers’ issues among others remained major causes of concern. Introduction of 62 new Vande Bharat train services in different parts of the country, four Amrit Bharat Express services between Darbhanga-Anand Vihar and Malda Town-SMVT Bengaluru and the first Namo Bharat Rapid Rail between Ahmedabad and Bhuj were significant achievements. Indian Railways achieved 6,450 km of complete track renewal, 8,550 turnout renewals, and raised speeds to 130 kmph over 2,000 km in 2024.
Navi Mumbai Airport to be inaugurated in April 2025
Navi Mumbai International Airport (NMIA) will be inaugurated on April 17. Domestic flights will start in late May and international operations will commence in July. Initially, the airport will handle 8–10 million passengers, with its capacity expanding to 20 million by December 2025. After the completion of the first A320 validation flight landed at NMIA, the airport will apply for aerodrome permit in February. Following the April inauguration, a four-week security and procedural review will be conducted. The validation flight will allow NMIA’s procedures to be included in the global Electronic Aeronautical Information Publication (eAIP). The airport has successfully calibrated its Instrument Landing System (ILS) and Precision Approach Path Indicator (PAPI), ensuring safe operations during low visibility. Current Mumbai airport handles over 50 million passengers annually, far exceeding its original capacity of 40 million.
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.