Development Watch – Week #5 Jan’25
Development News
“Green Jobs” for India’s hinterlands
Last year, India’s renewable energy capacity increased by 114% adding about 30 GW of new renewable energy, as per the Ministry of New and Renewable Energy. With nearly 65% of India living in rural areas, renewable energy comes as a very lucrative option for energy access to this region. With abundant land and natural resources, rural areas are ideal for developing solar farms, wind parks, and biomass projects. These initiatives can generate employment opportunities across various levels, from unskilled labour for project installations to skilled positions in operation and maintenance. Growing adoption of decentralized renewable energy (DRE) solutions like solar home systems, and mini-grids, opens avenues for local entrepreneurs to establish energy distribution and servicing businesses. There could be ancillary jobs in manufacturing, logistics and training services, thereby boosting rural economies.
Sangini Initiative for rural menstrual health
In rural Jharkhand and Bihar, the Sangini initiative by NOBA GSR is transforming lives by providing sanitary napkin vending machines in 675 schools. This program improves menstrual hygiene, reduces absenteeism, and empowers over two lakh girls and women. Supported by various organizations, Sangini aims to eradicate period poverty and expand its reach across India. Each Sangini dispenser is equipped with a SIM card. When stocks are running low, the machine automatically sends an SMS notification to a designated NOBA prabhari and the delivery centre, ensuring timely refills. through our initiative and partnership with Wheels Global Foundation, non-profit bodies such as Prayatna and Sahita and donations from the Press Trust of India, State Bank of India, NOBA and others.
Budget 2025-26 expectations for a sustainable Auto industry
India’s automotive sector has grown into the world’s third-largest market, driven by consumer demand and government policies like PLI, FAME-II, and PM E-DRIVE schemes. The upcoming Union Budget 2025-26 is expected to emphasize eco-friendliness, innovation, and employment generation, focusing on EV infrastructure, domestic manufacturing incentives, and GST reforms to maintain momentum. The budget is expected to earmark funds for promoting manufacture of EVs in India by way of multiple schemes like Auto PLI, PM E-DRIVE Scheme and The Scheme to Promote Manufacturing of Electric Passenger Cars (SMEC), etc., to attract both domestic and international investment in the country.
L&T to build AI-enabled 10-MW data center in Uzbekistan
Larsen & Toubro (L&T) has secured a project to build Uzbekistan’s first AI-enabled and sustainable 10-Megawatt data center in Tashkent. Valued between Rs 1,000-2,500 crore, the project involves engineering, procurement, and construction of a state-of-the-art facility designed to power AI applications, reduce environmental impact, and enhance energy efficiency. L&T will be responsible for the engineering, procurement and construction of this new-age Data Centre equipped with advanced AI capabilities to power the next generation AI applications.
Tier 2 cities driving India’s real estate growth
Nagpur has emerged as the top-performing city among Tier-II cities in India, followed by Jaipur and Lucknow. Nagpur has positioned itself as a key player in the country’s real estate market. This growth is attributed to rapid infrastructural advancements and evolving urbanization trends that are transforming the real estate landscape and creating significant investment opportunities. A recent market assessment has highlighted the rise of emerging urban centers along expressways, which are enhancing connectivity and fostering economic growth in nearby micro-markets. Nagpur’s Samruddhi Circle has been identified as the leader in real estate land price appreciation among the eight emerging micro-markets studied. Over the past decade (2015–2024), land prices in the area have surged by 3.7 times, from INR 900 to INR 3,300 per sq. ft. Ahmedabad’s Shela and Agra’s Shastripuram micro-markets follow with projected land price growth of 4.5x and 4.0x, respectively. Other promising markets include Jaipur (Ajmer Road), Lucknow (Raebareli Road), Meerut (Ganga Nagar), Chandigarh (Kharar), and Bhopal (Indus Towne).
$11 billion investment by Blackstone in Maharashtra
Blackstone Group, the world’s largest alternative asset manager, is planning to invest up to $11 billion to develop real estate and infrastructure assets. This includes data centres in Maharashtra’s key cities over the next three-five years. Blackstone is a US-based institutional investor has signed three separate agreements in Davos with the state government. About $5 billion of this total investment will go into Mumbai 3.0, the state government’s ambitious plan to develop a third city to expand the capacity of the country’s financial capital Mumbai and satellite city Navi Mumbai.
Blackstone along with its joint venture partner Panchshil Realty has inked a pact with the Maharashtra Industrial Development Corporation (MIDC) to invest up to $3 billion or Rs 25,000 crore for the development of data centres in the state. Blackstone will also invest in development of office complexes, hospitality assets, retail malls, and warehousing properties. Blackstone-backed Nexus Select Trust retail REIT, India’s second-largest mall platform, listed on the exchanges in May 2023. In 2024, Blackstone listed Ventive hospitality, India’s third-largest hotel chain, with alliance partner Panchshil.
1st Vande Bharat train from Vaishno Devi to Srinagar
Indian Railways conducted a trial run of the first Vande Bharat train from Katra to Srinagar. It passed through India’s first cable-stayed bridge and the highest railway bridge. Designed for Kashmir’s cold climate, Vande Bharat trains have seen high demand and interest for export. Equipped with advanced safety and amenities, they promise enhanced travel experiences. The train will run through Anji Khad Bridge which is India’s first cable-stayed railway bridge and Chenab Bridge which is the highest railway bridge in the world. Several countries have also shown interest in importing the semi-high-speed Vande Bharat trains from India. The first Vande Bharat Express train was flagged off on February 15, 2019, on the New Delhi-Kanpur-Allahabad-Varanasi route, running at a speed of 160 kilometres per hour. The trains have advanced safety features, such as Kavach technology, accessible toilets for Divyangjan, and integrated Braille signage. In India, there are four new types of trains: Vande Bharat Chair Car, Vande Bharat Sleeper, Namo Bharat Train, and Amrit Bharat Train.
Tajikistan to partner with Chabahar port
India’s Eurasia connectivity will get a further boost with Tajikistan beginning negotiations with Iran on cargo transit via Chabahar port. New Delhi has assisted in building and signed a 10-year deal in 2024 with Tehran for the port management. Tajikistan is negotiating with Iran for the transit of its cargo through the Chabahar port as it seeks to widen its trade ties with India, the Gulf and Indian Ocean Region countries. Tajikistan’s transport minister and Iran’s minister of roads and urban development recently signed a Cooperation Program for the development of transit cargo transportation through the port of Chabahar. As Tajikistan does not share a boundary with Iran, it will access the Chabahar port either through Uzbekistan-Turkmenistan before reaching Iran or through Afghanistan.
Budgetary Approach to unlock solar and renewable energy
India’s renewable energy sector is undergoing a remarkable transformation, driven by its ambitious goal of achieving 500 GW of renewable energy capacity. Solar power has been the primary catalyst, with record-breaking growth in 2024, including 24.5 GW of solar capacity and a 47% share of the rooftop solar (RTS) sector. The government’s PM Surya Ghar: Muft Bijli Yojana program also helped facilitate 7-lakh RTS installations in a short span of 10 months. While the United States (US) represents an important potential market for Indian products, incentivizing exports would unlock opportunities beyond the US as well. Solar Parks Scheme (SPEX), needs to be enhanced as they have played a crucial role in the production of high-efficiency photovoltaic cells, modules and electronic components as well as fostering innovation.
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.