Development Watch – Week #2 Mar’25
Development News
Delhi Master Plan 2041 for 150 million sq ft commercial real estate
Delhi’s Master Plan 2041 aims to create 150 million sq ft of commercial real estate, generating a USD 15 billion opportunity for the real-estate sector. The plan includes developing 5000 acres of greenfield commercial spaces, self-sufficient sectors, and revitalizing 1,700 unauthorized colonies. It also targets integrated development for 47 villages. It would unlock 57,000 hectares for urban expansion. It is also estimated that 20% of the workforce of Gurgaon lives and travels to work from West and North West Delhi. Across India, an investment of Rs. 62,328 Crores is expected in land development. Developers have acquired 2,335 acres across 23 cities, aiming for 194 million sq ft in residential, commercial and mixed-use projects. The trend is bolstered by infrastructure advancements, policy reforms, and a steady economic outlook.
Blackstone to start investing in Infrastructure
Blackstone chairman announced the firm’s expansion into India’s infra investing and credit businesses, highlighting India’s resilience against US tariffs. With a focus on ports, airports, and road assets, Schwarzman praised India’s macroeconomic strengths and its position as the fastest growing large economy. Plans stem from earlier successful investments, reflecting India’s favorable investment climate. Blackstone has got the best returns in India globally, over its two decade investing journey in ports, airports, and road assets. Blackstone has over $50 billion exposure in India. Assets under management now stand at USD 1.1 trillion globally. The PE sector has undergone a lot of change in India, including the environment for large control deals getting better and a dramatic improvement in exit opportunities.
Cost of greenfield construction rises
In 2024, greenfield construction costs increased by 2-4% compared to 2023, a moderation from previous years. Key materials like cement and steel saw price declines, while labor costs rose by 5%. Mumbai experienced the highest fit-out cost increase. The sector faces challenges due to labor shortages but continues to attract strong investments and focus on sustainability. In 2021-22, cost hikes of 6-8% were observed. This moderation is attributed to easing supply chain constraints and stabilizing inflationary pressures. The data was published by CBRE South Asia, in its report titled “India Construction Cost Trends 2024-25: Navigating Costs in a Transforming Landscape”.
India’s Circular Economy a $2 billion market
India’s circular economy could generate a market value of over $2 trillion. It could create close to 10 million jobs by 2050. Circular Economy is about to drive one of the biggest transformations in business since the Industrial Revolution 250 years ago. circular Economy could provide a potential $4.5 trillion in additional economic output by 2030 world over. every year, the World Circular Economy forum is organized every year. In 2025, it is being organized in Sau Paulo, Brazil. The “Plastic Waste Management Rules (2016)” have led to significant measures targeting municipal, industrial, residential, and commercial sectors. MoEFCC has also notified Eco Mark Rules to encourage demand for environmentally friendly products while promoting energy efficiency and circular economy principles. Action Plans for 10 waste categories have been finalized, for which regulatory and implementation framework is under progress. A Waste to Wealth PMS portal was launched under the Swachh Bharat Mission. The portal is designed to enhance project monitoring, streamline data management, and facilitate resource sharing.
NDMC aims for solar panel on every rooftop by 2026
The New Delhi Municipal Council (NDMC) convened its first council meeting on Tuesday after the Delhi Assembly elections. The focus was on key civic initiatives, including a push for 100 per cent solar energy adoption by 2026. The civic body would provide subsidies equal to those offered by the central government to encourage solar energy usage. The civic body council will personally monitor the Summer Action Plan, which includes rainwater harvesting to mitigate waterlogging issues. A strict encroachment drive will also be launched. There is an upcoming project to install 9,000 new water connections across 34 clusters, benefiting 47,000 residents within 6 months. NDMC will also explore ways to procure electricity at lower costs to reduce high power bills.
ONGC buys clean energy firm PTC Energy for $106 million
Oil and Natural Gas Corporation’s (ONGC) green unit has acquired clean energy firm PTC Energy for INR 9.25 billion to expand its renewable energy portfolio. PTC Energy, with 288 MW of wind generation capacity, helps ONGC progress towards its aim of achieving 10 GW renewable energy capacity by 2030. PTC Energy has operational wind generation capacity of 288 mega watt, located at 7 locations across 3 Indian states. India has committed to setting up 500 GW of non-fossil fuel electricity generation capacity by 2030. However, it is still falling short of its previously set target to add 175 GW by 2022. ONGC Green is aiming to achieve 10 GW renewable energy portfolio by 2030. Earlier in February, ONGC and its joint venture NTPC Green Energy acquired Ayana Renewable Power, which operates solar and wind plants valued at $2.3 billion.
Crowd Management System for Railway Stations
In the wake of the stampede in February at the New Delhi railway station that claimed 18 lives, the government has decided to implement 100% access control where only passengers with confirmed tickets are allowed on to platforms. Holding areas have been established to manage large crowds at 60 designated stations. A pilot project has already been initiated at New Delhi, Anand Vihar, Varanasi, Ayodhya and Ghaziabad. At overcrowded stations, tickets will be issued only according to the available seats in the train.
US push for Agriculture sector in India
The US is urging India to negotiate a comprehensive trade agreement, with a key focus on opening India’s agriculture sector. This would involve reducing import tariffs, potentially impacting 700 million rural livelihoods. India currently imposes tariffs ranging from zero to 150% to protect its farmers. US seeks to export heavily subsidized farm products, which India views as sensitive. Agriculture and allied activities such as animal husbandry form the backbone of India’s rural economy. The sector provides employment to over 700 million people. India is largely self-sufficient in food production where farming is a livelihood, whereas for the US, agriculture is a major trade industry. In 2024, US agricultural exports stood at $176 billion, accounting for about 10 per cent of its total merchandise exports. With large-scale mechanized farming and heavy government subsidies, the US and other developed countries view India as a lucrative market to expand their exports.
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.