Development Watch – Week #2 April’25

Development News

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China has 10x more ships than India

India has a weak presence in shipping. It has less than 500 commercial ships as compared to China’s 5,000. Collective action is needed to boost Indian shipping industry. Both private and public sectors must collaborate to leverage India’s coastal advantage. It will also enhance maritime capabilities. If the US goes ahead with impending tariffs on Chinese-made ships, there is a major opportunity for India, as per Safesea. Safesea is a US-based shipping company and one of the shortlisted bidders for the SCI. Strategic reforms include trade agreements, FDI incentives, regulatory ease, single-window clearance among other policy changes. Recently the Lok Sabha has passed the Coastal Shipping Bill 2024 for regulating vessels trading in Indian coastal waters. The bill is importance for boosting maritime commerce and ensuring cooperative federalism. India has a long coastline of over 11,098 km and more than 2.3 million square kilometers of exclusive coastal zone. The Coastal Shipping Bill seeks to encourage participation of Indian-flagged vessels owned and operated by Indian citizens for national security and commercial needs.

Infrastructure boost for rural Tripura and Odisha

The Ministry of Rural Development has approved road and bridge projects in Tripura and Odisha to improve connectivity and boost growth under PM-JANMAN. The projects aim to provide all-weather road connectivity to Particularly Vulnerable Tribal Groups, enhancing socio-economic conditions and access to essential services. The Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN). For Tripura, 25 roads totaling 84,352 km have been sanctioned with an investment of Rs. 76.47 Crores. This follows an earlier approval of 42 roads, spanning 118 km amounting to Rs. 114 Crores. Odisha has received approval for 26 roads covering 63.2 km, along with two long-span bridges (LSBs), valued at Rs. 70 crore. This complements 66 roads (211 km) and four previously sanctioned LSBs worth Rs. 219 crore. These projects aim to provide all-weather road connectivity to Particularly Vulnerable Tribal Group (PVTG) habitations. This would lead to improvement in socio-economic conditions, fostering economic development, and enhancing access to essential services such as healthcare, education, and markets. PM JANMAN scheme aims to cover 75 PVTG communities in 18 states.

New PPP policy & Projects for Railways

Indian Railways is set to introduce a revised public-private partnership (PPP) policy. Around 50 projects have been identified for investment. The Union Cabinet will soon consider the new framework. The policy aims to minimize revenue risks for the railways. It will encourage private participation in railway projects. The focus is on projects with high return rates like port connectivity. The current PPP policy was introduced in 2012. The Union Cabinet approved four railway multitracking projects in Maharashtra, Odisha, and Chhattisgarh, investing Rs 18,658 crore. These projects, spanning 1,247 km, include a new line in Chhattisgarh, line doubling in Maharashtra, and additional lines in Odisha. Expected benefits include increased connectivity, reduced logistics costs, and significant employment generation during construction.

India-assisted Rail projects for Sri Lanka

Prime Minister Narendra Modi and Sri Lankan President Anura Kumara Dissanayake inaugurated railway projects in Anuradhapura, Sri Lanka. The projects include the refurbishment of the 128 km Maho-Omanthai railway line and the construction of a new signaling system. These developments aim to enhance rail connectivity and strengthen bilateral relations between India and Sri Lanka. India is providing an assistance of $91 million dollars. This will be followed by the launch of construction of an advanced signaling system. India is giving a grant assistance of $15 million dollars.

Impact of US tariffs on Renewable Energy industry

The US-imposed 26% reciprocal tariff on Indian solar goods has attracted mixed responses. While some view it as a challenge, others see potential benefits due to similar tariffs on other exporting countries. India’s solar export of around $1 billion to the US may face uncertainties, but the growth in domestic capacity and US-India trade talks remain crucial. President Donald Trump announced a signed executive order during an event to release new tariffs in the Rose Garden of the White House, in Washington.

2,500 metric tonnes of Li-ion EV waste batteries

Recyclers in India have collected over 2,570 metric tonnes of lithium-ion waste batteries from EVs in the past three years, according to Union Minister Kirti Vardhan Singh. The country generated nearly 5 million metric tonnes of electronic waste between 2021-2023. Battery Waste Management Rules were introduced in August 2022 to mandate proper recycling to prevent environmental contamination. These rules apply to all types of batteries, including EV batteries, portable batteries, automotive batteries and industrial batteries. A centralised online EPR portal has been developed for the registration of producers, recyclers and refurbishers. The portal facilitates the exchange of EPR certificates and the filing of returns by producers and recyclers/refurbishers.

BHEL-Hitachi to develop largest private power transmission project

Bharat Heavy Electricals Limited (BHEL) and Hitachi Energy India will collaborate on India’s largest private power transmission project worth Rs 12,000 crore. Awarded by Adani Energy Solutions, the project involves developing HVDC terminals to transmit renewable energy from Rajasthan’s Bhadla to Fatehpur, Uttar Pradesh, benefiting approximately 60 million households. The contract includes various components like control transformers, AC/DC control systems, thyristor valves, and 765/400 kV grid connections. The 6,000 MW, 950 km HVDC link can power approximately 60 million households.

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