Development Watch – Week #3 Feb’25

Development News

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RuralShores BPO Delivery Centre inaugurated in Guwahati

Assam CM Himanta Biswa Sarma inaugurated the RuralShores BPO Delivery Centre in Guwahati to provide employment for rural youth. This socio-commercial initiative, part of Sri Madhusan Sai Global Humanitarian Mission, aims to employ educated, underprivileged rural youth. The CM urged the establishment of more centres across the state, promising to create necessary infrastructure for these initiatives. The mission is empowering over 3,000 employees in 12 centres through 8 states. They are delivering over 45 processes to more than 20 blue chip clients through its BPOs. The services provided include content moderation, data annotation, data tagging, social and digital media monitoring. Mission founded by Sri Madhusudan Sai also provides insurance document verification, e-mail and chat management and validation, document digitization, etc.

Energy independence for India through Solar & Wind

India could achieve energy self-sufficiency for the first time by leveraging its abundant solar and wind resources. Advancements in technology will enable India to generate low-cost energy and transition away from its long-standing dependence on imported oil and gas. For 50 years, India has been an importer of oil and gas. 85% of energy is imported. For the first time, due to abundance of wind and sun, and because of technology, India has an ability to generate own energy at very low cost. In Europe, there is no access to low-cost energy. There is a huge disadvantage and their solutions like hydrogen, blue hydrogen, nuclear and offshore wind. Hence, unlike Europe, India doesn’t need subsidies.

$1.16 Billion in Climate Finance for India

India has received $1.16 billion for climate projects through UN funds, but most actions are financed domestically. Multiple measures, including the National Mission for Sustainable Agriculture, target climate adaptation and resilience. India’s budget prioritizes greening the economy, focusing on agriculture. Developed nations’ climate fund pledges fall short, pushing India to rely on internal resources. According to the United Nations Framework Convention on Climate Change (UNFCCC), adopted in 1992, high-income industrialized nations were historically responsible for most of the greenhouse gas emissions driving climate change. The developed nations are now required to provide finance, technology and capacity-building support to developing and low-income economies to help them cope with a warming world. India has so far received USD 1.16 billion for climate projects through the financial mechanism of the UNFCCC. This amount includes USD 803.9 million from the Green Climate Fund, USD 346.52 million from the Global Environment Facility (for climate change focal area), and USD 16.86 million from the Adaptation Fund.

Tesla’s EV entry in India

Tesla is entering the Indian market, with its first showrooms set to open in New Delhi and Mumbai as early as April. The company will introduce imported EVs, with prices starting at ₹21 lakh. India’s revised import duties and government incentives could boost Tesla’s prospects. Advanced features, over-the-air updates, and cutting-edge design set Tesla apart. The company has also begun hiring in India, signaling its commitment to a long-term presence in the country’s growing EV market. Tesla vehicles are expected to be priced from Rs. 21 lakhs ($25,000) in India. This makes Tesla a premium offering in the country’s EV market. Some models feature tri-zone temperature control, ventilated seats, and HEPA filtration for superior air quality. The recent union budget in India has reduced import tariff for electric vehicles priced over Rs. $40,000 from 100% to 70%. Duty for vehicles under $40,000 remains at 70%.

Overseas projects offer faster growth and higher margins to Infra companies

Indian infrastructure companies like L&T, KEC International, Afcons, and Tata Projects are expanding their international portfolios to mitigate domestic risks and capitalize on higher-margin global projects. The Middle East (UAE, Saudi Arabia, Qatar), Africa, and the Americas are key regions, with improved project execution and financial stability driving this shift. Faster turnaround of international projects as against long winding project-related bureaucratic tangles in India is prompting the companies to increasingly bid for work overseas. International orders represent nearly 42% of L&T’s $65 billion order book as of end-December. The projects range from $500 million to $3 billion dollars in size. Companies are strategically positioning themselves in high-impact areas of infrastructure development, such as hydrocarbon, renewable energy, large-scale transmission lines, road and rail networks, railway electrification, high-voltage substations and underground cable networks.

Aerospace supply from India sees growth

Leading aerospace firms like Airbus, Collins Aerospace, Pratt & Whitney, and Rolls-Royce are increasing parts sourcing from India. This is boosting India’s aerospace sector with companies such as Hical Technologies and JJG Aero experiencing significant growth. The shift is driven by supply chain challenges and rising air travel demand, alongside substantial aircraft orders from IndiGo and Air India. India, the world’s third-largest domestic aviation market by seats, is also among the fastest-growing, driving demand for maintenance services and parts. The Indian companies produce parts for landing gear, wings, fuselage, electrical switches and motion control systems which are essential for flight safety and performance. Although Indian firms have long supplied the $180 billion global aerospace industry, they are now moving beyond basic manufacturing to higher-value work such as design, engineering, and system integration.

Mega ports to start operation in 2029

Union Ports, Shipping, and Waterways Minister Sarbananda Sonowal said work is gaining momentum at Vadhavan. Shore protection works worth Rs. 1,700 crore already being awarded. The International Container Trans-shipment Port (ICTP) at Great Nicobar is in an advanced stages of appraisal and approvals, with environmental clearance already in place. Vadhavan Port, located near Dahanu town in Palghar district, will be one of India’s largest deep-water ports. It will provide direct connectivity to international shipping routes, reducing transit times and costs. First phase of the project is expected to be completed and operationalized by 2029, with an initial capacity of 4 million TEUs (twenty foot equivalent units).

Inland waterways terminal inaugurated at Jogighopa

The Union Minister of Ports, Shipping & Waterways inaugurated the Inland Waterways Terminal (IWT) at Jogighopa in Assam. The first shipment, comprising 110 metric tonnes of coal and stone chips, was sent to Bangladesh via a ship. The terminal holds strategic significance due to its location 91 km from Gelephu in Bhutan, 108 km from the Bangladesh border, and 147 km from Guwahati. The Jogighopa terminal is also one of the designated Ports of Call under the PIWT&T agreement between India and Bangladesh. By 2027, the terminal is expected to handle 1.1 million tonnes of cargo annually. The Jogighopa terminal, built at a cost of over Rs 82 crore, features an RCC jetty and approach designed for Electric Level Luffing (ELL) cranes for cargo handling. It also includes essential infrastructure such as an administrative building, customs office, immigration office, truck parking, 1,100 sqm of covered storage with power backup, and 11,000 sqm of open storage.

Highways Infrastructure Trust gets a Rs. 8,250 Crores Loan

Highways Infrastructure Trust (HIT), supported by KKR, has secured ₹8,250 crore in debt through a rupee term loan with a tenure of up to 17 years from seven major financial institutions. The funds will be used for financing needs of toll, operate and transfer (TOT) Bundle 16 on the Hyderabad-Nagpur corridor and acquiring road assets from PNC Infratech. Loan term of 17 years is backed by 7 financial institutions like Axis Bank, HDFC Bank, ICICI, IIFC, IndusInd Bank, PNB and SBI. Last September, HIT placed a winning bid for TOT Bundle 16 covering a 251-km stretch on the Hyderabad-Nagpur corridor of NH-44 in Telangana.

Structural Audit of 1,000 buildings in Mumbai

The Maharashtra Housing and Area Development Authority (MHADA) is set to complete the structural audit of 1,000 cessed buildings in Mumbai by March 2025. MHADA Vice President has urged officials to expedite this process, with efforts also focused on the redevelopment of aging structures and biometric surveys of commercial unit holders. This is part of the government of Maharashtra’s 100-day action plan. The housing body has recently held a review meeting to assess various projects under the Mumbai Building Repairs and Reconstruction Board. Of the 500 buildings, 171 audits have been completed, and reports for 32 buildings have been received. Executive engineers have been directed to issue notices under Section 79(A)(1)(A) for all 13,000 cessed buildings under the Mumbai Board’s jurisdiction. Officials are to expedite the redevelopment process for properties acquired under Section 91(A).

Dharavi redevelopment survey crosses 50,000

The Dharavi Redevelopment Project has made significant progress by completing over 50,000 door-to-door surveys. This marks a major milestone in the history of Mumbai’s Slum Rehabilitation Authority. The project aims to transform Dharavi into a modern urban hub, improving living conditions, infrastructure, and economic opportunities for its residents. This progress is a big boost for the survey teams and Dharavi residents, who are eager for the redevelopment to move forward. As per the latest survey figures, numbering has been completed for 85,000 tenements, while over 50,000 tenements have undergone door-to-door surveys. A previous survey conducted by Mashal in 2007-08 had identified around 60,000 eligible tenements in Dharavi.

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