Development Watch – Week #4 Feb’25

Development News

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Rural womenpreneurs solve climate challenges in Bihar

In rural Bihar, a group of women entrepreneurs are helping their communities tackle climate change. Groundwater depletion, extreme heat and erratic weather have causes havoc for farmers here. Supported by Jeevika, these women are transforming lives and securing farmers’ livelihoods. Each agri-preneur works with at least 150-200 small and marginal farmers hit by worsening climate challenges. The women’s groups advise on irrigation, provide climate-resilient seeds, and promote sustainable farming. They also help out with crop diversification and act as a helpdesk for digital work-essentially a one-stop centre for all problems they may encounter. Their remuneration is proportional to the range of services they provide farmers within a Panchayat.

$1 Billion subsidy plan for Solar Manufacturing

India is finalizing a $1 billion capital subsidy plan to bolster its manufacturing industry. This is as part of a wider effort to reduce dependence on China and profit from the global energy transition. The proposal is being made by the Ministry of New and Renewable Energy and will target domestic makers of wafers and ingots. This is a weak segment of India’s solar industry, while India has grown its domestic modules and cell making segments. India is heavily reliant on China for imports of solar equipment, which is a risk to the nation’s energy security. According to BloombergNEF, India has only 71 gigawatts of modules, and nearly 11 GW of cells capacity. Manufacturing of wafers and ingots stands only at 2 GW capacity.

Tata Power commits Rs. 30,000 Crore investments for Assam

Tata Power plans to invest Rs 30,000 crore in Assam over five years to develop 5 GW of renewable energy projects. The Assam government will assist in land identification and infrastructure development. The project, including solar, wind, and hydro energy, aims to enhance energy efficiency, create 3,000 jobs, and promote economic growth. Tata Power integrated power companies have signed a Memorandum of Understanding (MoU) at Advantage Assam 2.0 to further its commitment to renewable energy and sustainable development in the state. Tata Power’s subsidiary Tata Power Renewable Energy has signed one more MoU with Assam Power Distribution Company Ltd (APDCL) to drive renewable energy adoption and enhance energy efficiency across the state. NTPC has also signed MoUs worth Rs. 2 Lakh Crore with Madhya Pradesh for non-fossil energy projects. NTPC Green Energy Ltd. will help develop up to 20 GW renewable energy projects. The agreements were made at the Global Investors Summit in Bhopal.

Possibilities in RE for next 5 years

Prime Minister of India has invited global investments in India’s energy sector, highlighting ambitious renewable energy goals such as 500 GW of RE capacity and 5 million tonnes of green hydrogen by 2030. This underscores economic strength, political stability, and the importance of ‘Make in India’ initiatives in driving growth. The PM was virtually addressing the India Energy Week 2025. India’s energy ambitions are based on 5 pillars of resources, innovation, economic strength and political stability. In the last 10 years, India has become 5th largest economy from the 10th. Solar generation capacity has increased 10 times and India is the 3rd largest solar power generating nation. India is also blending 19% ethanol and has a feedstock of 500 million tonnes. The Global Biofuels Alliance formed during G20 Summit in New Delhi has 28 member countries and 12 international organizations.

EV policy with new Investment Rules

The Centre is planning to notify the new electric vehicle (EV) policy, which was announced in March 2024. The new policy may mandate turnover of Rs. 2,500 crore by the second year of operations, Rs. 5,000 Crore by 4th year and Rs. 7,500 by 5th year from the start of manufacturing. The proposed policy will permit companies to set up assembly operations within existing factory premises. the required investment of Rs. 4,150 crore (approximately $500 million) must come from new capital infusion, excluding prior investments and costs related to land and buildings. Companies meeting these conditions will qualify for reduced import duties of 15%, significantly lower than the current 110% tariff. Companies will have 120 days to apply, with the policy allowing annual imports of up to 8,000 premium EVs (priced above $35,000) at reduced duties. Applicants must establish operational manufacturing facilities within three years and achieve 25% domestic value addition initially, increasing to 50% within five years of ministry approval.

Rs. 5.65 Lakh Crore real estate potential in Delhi

The real estate potential of South Delhi, one of India’s poshest regions, is worth Rs 5.65 lakh crore across 42 MCD regulated colonies. Plots (occupied and vacant) in Category A & B colonies account for majority of it, according to a report by Golden Growth Fund (GGF). GGF is a category-II real estate focused Alternative Investment Fund. Consistent demand and safe investment, luxury plots in Category A and B colonies continue to attract affluent buyers.

World’s longest hyperloop test track in India

Hyperloop is an under development high-speed mass transport system. It operates like railways but uses newer technologies which are expected to be more efficient and cheaper. India will soon begin developing world’s longest hyperloop test track. This test track will assess viability of commercial operations for the futuristic transport service. The significant infrastructure would allow speeds of up to 1,1000 kmph. This builds upon the experience of a 422-metre test track that was completed in December 2024.

Largest datacenter with Rs. 20,000 Crore investment

Blackstone Group and Panchshil Realty plan to develop India’s largest hyperscale data center with a 500 MW capacity in Navi Mumbai, investing over Rs 20,000 crore. The data center will be powered by up to 65% renewable energy and will encompass 14 buildings with over 3 million sq ft. Blackstone Group is the world’s largest alternative asset manager. Panchshil Realty is its development partner. They are jointly planning to develop India’s largest hyperscale data center.

Port sector expansion for major growth by FY-2028

India’s ports sector is expected to add 500-550 MTPA of capacity annually between FY2023 and FY2028. The growth of the ports would be driven by an increase in the handling of petroleum, oil, lubricants (POL), coal, and containerized cargo. Major ports handled 819 MMT of cargo in FY24. The sector’s infrastructure includes 13 major and 205 non-major ports, strategically positioned to enhance India’s dominance in global maritime trade. India’s ports currently manage 95% of the country’s export volumes, and 70% of its export values. With a coastline stretching 7,500 km and 20,275 km of national waterways across 24 states. India’s location in the Indian Ocean is aligned with 80% of global maritime oil trade. The Indian ports infrastructure includes 13 major ports and 205 non-major ports.

MMRDA accused of corruption by French firm

French engineering firm Systra has alleged corruption and delays by the Mumbai Metropolitan Region Development Authority (MMRDA). It has cited undue financial demands and stalled payments. In a letter dated November 12, 2024, the French embassy urged Maharashtra’s resident commissioner, Rupinder Singh, to intervene. It cited “severe harassment and challenges” faced by Systra in its role as a general consultant for MMRDA projects. The French embassy has sought intervention, while MMRDA dismisses the claims as baseless and has issued a termination notice to Systra.

Operational EVs to reach 28 million by 2030

The total number of operational electric vehicles (EVs) in India is likely to cross the 28 million-mark by 2030 fueled by increasing demand and incentives. This is according to the India Energy Storage Alliance (IESA). IESA is focused on e-mobility, energy storage, and hydrogen. India has made sustained inroads in its decarbonization journey. Sales of EVs are supported by demand and supply incentives, growing consumer demand and a focus on developing charging infrastructure. There is also increased environmental awareness, advancements in battery technology, and easily accessible charging infrastructure. India’s cumulative EV sales have crossed 4.1 million units in fiscal year 2023-24. IESA estimate of energy demand for EV charging in FY 2024-2025 is 4,000 GWh and it is likely to increase to 38 TWh by FY32 with maximum power demand estimated at 366.4GW.

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