Development Watch – Week #2 May’25

Development News

---

Government initiatives needed to boost Biogas sector

The Indian Biogas Association (IBA) proposed integrating government initiatives like Sustainable Alternative towards Affordable Transportation (SATAT), GOBARdhan and CBG (compressed biogas) blending into a unified national mission to boost the biogas sector. Other recommendations include centralized tracking, standardized benchmarking and integrated funding to scale up biogas deployment in India. The sector could benefit from mandating phased CBG blending across sectors, creating a green certificate ecosystem and accelerating decentralized biogas infrastructure development. Additional proposals include incentivizing waste segregation and feedstock supply chains. Biogas can be promoted as a primary cooking fuel in rural India by introducing targeted subsidies, use of LPG-biogas hybrid stoves and by aligning efforts with Ujjwala Yojana and City Gas Distribution (CGD) networks.

Rural India combats heat with traditional architecture

Rural communities in heat-wave prone states are employing traditional methods for resilience. Villagers are constructing check dams, planting native trees, and modifying daily routines to combat rising temperatures. According to IMD, the number of heatwave days is likely to increase by up to 7-8 days in northern and western India. This includes states like UP, Bihar, Gujarat and Rajasthan. Madhya Pradesh’s Barwani district is among the hottest districts which saw temperatures rising over 50 degrees Celsius last year. Villagers are also reviving village ponds, storing rainwater to recharge groundwater and pumps. With a mix of brick and mud homes, families are turning to traditional architecture to beat the heat. Methods like coating walls with cow dung, building thatched rooms from ‘arhar stalks’ for better ventilation. In Bundelkhand, known for parched summers and agrarian distress, farmers are turning to deep-rooted native trees like ber, neem, sitaphal and aam for shade and resilience.

Land selected for Shipbuilding repair centres

India is set to boost its ship-building industry with mega centers. The central government has identified land for establishing mega shipbuilding and repair centers in Andhra Pradesh, Tamil Nadu and Gujarat. South Korea’s HD Hyundai may be partnering with Cochin Shipyard Limited (CSL) for domestically manufactured large vessels for intercontinental trade. They may potentially be investing Rs. 10,000 Crores in Thoothukudi, Tamil Nadu. This progress is close to Finance Ministry’s Expenditure Finance Committee (EFC) completing appraisals for an enhanced shipbuilding financial assistance policy worth Rs. 18,090 Crores and a maritime development fund of Rs. 25,000 Crores announced in Budget 2025-26. Bharat Container Line, a national container shipping carrier, is expected to reduce dependence on foreign flagged vessels, and strengthen India’s control over foreign trade.

Optical fibre signal-control technology for Railways

West Central Railway’s Bhopal division has introduced State of the art signal control technology. It is based entirely on optical fibre operation at its Nishatpura yard. This replaces the traditional wiring system. It is a first of its kind cutting edge technology that will play a key role in making railways safer and more technologically advanced. A phased roll-out has already begun on the Bhopal-Bina railway section. The entire section is expected to be upgraded with the new system by June 2026. This replaces traditional wiring ensuring faster and more reliable signal transmission. This system includes features like automatic cooling and backup lines, promising smoother operations and improved punctuality. The core of this upgrade is “Lamp Output Module” (LOM). It is a device that sends signal commands directly from control room to signal posts through optical fibre. A full roll out is expected by June 2026. No bulky wiring is required as all communication will happen through fibre optics.

50 million sq ft needed for data centres by 2030

India may need an additional 45-50 million square feet of real estate and 40-45 terawatt-hours (TWH) of incremental power for data centres by 2030, to keep pace with the surging demand for artificial intelligence (AI). According to a Deloitte report titled “Attracting AI Data Centre Infrastructure Investment in India”, the country has cost advantages, renewable energy focus and strategic location. Its emergence as a global AI hub hinges on building critical infrastructure, talent and policy gaps. India would require an additional 45-50 million square feet of real estate space and 40-45 Terawatt hours (TWH) incremental power by 2030 to meet growing demand for AI. 6 pillars for a world-class ecosystem need real estate, power and utilities, connectivity, compute infrastructure, talent and policy framework. There should be a separate category for data centers in NBC and recognition under the Essential Services Maintenance Act, to incentivize specialized infrastructure.

$3.4 Billion private credit deal for Shapoorji Pallonji group

Shapoorji Pallonji Group, an privately-held Indian conglomerate, is poised to finalize a $3.4 billion debt agreement. It is potentially India’s largest private credit deal. Major investors like Ares Management and Cerberus Capital are participating. Deutsche Bank has arranged the zero-coupon rupee bond yielding 19.75%. This deal highlights the growth of India’s private credit sector, fueled by infrastructure development.

EV Sales to grow despite tariffs

Global electric vehicle sales are surging. The International Energy Agency projects EVs will be 25% of car sales this year. China leads the EV transition, driving production and affordability. Emerging economies also see rapid growth, boosted by Chinese automakers. While Europe faces stagnation and the US sees slower growth, the overall EV market remains strong. The IEA put sales of EVs, including plug-in hybrids, at more that 17 million last year, as sales increased by more than 3.5 million vehicles from 2023. Sales in emerging and developing economies in Asia, Latin America and Africa boomed last year, increasing by over 60 percent year-on-year. Chinese automakers have also been investing in local production in numerous developing country markets to avoid tariffs.

Blackstone FDI deal with Maharashtra govt

The Maharashtra government has signed an MoU with Blackstone Group subsidiaries, XSIIO Logistics Parks and Horizon Industrial Parks, to bring Rs. 5,127 Crores in FDI. This investment will facilitate the development of modern logistics and industrial parks across key locations like Nagpur, Bhiwandi (Thane), Sinnar (Nashik), Panvel (Raigad) and Chakan (Pune). As per the agreement, over 10 modern industrial and logistics parks will be developed on 794.2 acres of land, with construction planned on 1.85 cr square feet land. The projects are expected to bring in foreign direct investment (FDI) of Rs 5,127 crore and will generate approximately 27,510 direct and indirect employment opportunities. The industrial logistics hub will be ESG compliant (environmental-social-and-governance).