Development Watch – Week #3 June’25

Development News

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Najafgarh drain to become a canal-top solar corridor

In a significant push towards clean energy and water conservation, the Delhi government plans to transform Najafgarh Drain into a 30 MW canal-top solar power corridor. The project will be implemented in phases. The first phase will generate 5 MW solar power for a 6 km stretch from Dhansa Border to Ghummanhera. The project is estimated to save nearly 270 million litres of water annually, as panels will reduce rate of water evaporation. The project will be developed under a PPP model. Najafgarh drain is a major source of pollution in Yamuna River. Desilting drains that fall into the river and projects for rejuvenation of the Yamuna are also underway in the national capital. The Delhi government is also installing 32 real time water monitoring stations. 10 will be on Yamuna while other 22 others will be set up on major city drains. Delhi Vidhan Sabha is also being solar powered by the government.

VinFast and Global Assure partnership for EV customer service

Vietnamese EV maker VinFast is partnering with Global Assure to strengthen its customer service across India. Global Assure will oversee delivery of essential customer care services. It includes a dedicated 24×7 call centre, nationwide roadside assistance, mobile charging solutions VinFast is gearing up to launch its premium electric SUVs (VF-7 & VF-6) in the Indian market. VinFast is also investing $500 million to set up its manufacturing plant at Tuticorin in Tamil Nadu. It is expected to be completed by the start of second half of 2025. It aims to push annual production in India to 1.5 lakh EVs and even export to countries in Middle East and Africa. UP also plans to develop a Rs. 700 Crore manufacturing on 500 acres in Kanpur. Under the Kanpur Metropolitan Development Vision – 2030, the UP State Industrial Development Authority (UPSIDA) will develop a cutting edge EV park and dedicated freight corridor. Facilities to assemble Li-ion batteries, chargers, controllers and electronic components will also be established. A dedicated research and development (R&D) centre will be a vital part of the project, driving innovation and facilitating advanced product development.

Luxury EV sales zoom 66% in India

Luxury EV sales in India surged by 66% in first 5 months of the year Mercedes-Benz India saw a 73% increase. 2,027 units were sold in the first 5 months of 2025. It is driven by demand in metro and in emerging markets. BMW is also experiencing strong demand, even in Tier-2 cities. EVs now account for 11% of luxury car sales, up from 7% last year. 1,223 luxury EVs were sold in the same period last year. This is the vehicle registration data from VAHAN portal of Ministry of Road Transport & Highways (MoRTH).

Siemens-led consortium wins Rs. 4,100 Crore contract for bullet train signaling

A consortium including Siemens Ltd. has secured Rs. 4,100 Crores contract for India’s first bullet train project. It focuses on signaling and telecommunication systems. Siemens share is Rs. 1,230 Crores. It involves design, installation and long term maintenance. The project aims to modernize railway infrastructure with ETCS (European Train Control System) Level 2 Technology. It supports speeds up to 350 kmph. The systems are designed to facilitate real-time train supervision, continuous wireless communication, and centralized traffic management. The National High Speed Rail Corporation Ltd. (NHSRCL) is the autonomous body for India’s first bullet train project. The project will be executed over 54 months, with Siemens providing maintenance support for 15 years to ensure lifecycle reliability.

Aadhar Authenticated Tatkal trains from July 1

The Indian Railways has decided that only Aadhar-authenticated users can book Tatkal tickets on IRCTC Website and App. This will be applicable from July 1 onwards. For AC classes, the restriction applies from 10-10:30 am and for non-AC classes from 11-11:30 am. It has also been decided that no agent bookings will be allowed in first 30 minutes for AC and non-AC classes. Aadhar-based OTP authentication will become mandatory for Tatkal bookings made online starting July 15 this year. Tatkal tickets booked at computerized Passenger Reservation System (PRS) counters and through authorized agents, will require OTP authentication sent to mobile number of passenger at the time of booking.

Dreamliners to be inspected after fatal crash triggers

Following a devastating crash involving an Air India Boeing 787, which claimed over 250 lives, the airline has completed enhanced checks on 22 of its Dreamliner aircraft. These checks were mandated by the DGCA and included assessments of take-off parameters and engine controls. While no significant faults were found, several flights were cancelled due to the inspections and airspace closures.

Karnataka 1st in highest wind power capacity

Karnataka secured the top position in India for wind power capacity addition. The state added 1,331.48 MW in the financial year 2024-25. Energy Minister K J George received the award from Union Minister Prahlad Joshi on Global Wind Day 2025. Tamil Nadu and Gujarat followed in second and third place respectively. Karnataka’s total installed wind power capacity now stands at 7,351 MW. The state is preparing to implement 17 GW of wind power projects, with over 5 GW planned under the RE cluster programme. Infrastructure is being strengthened through establishment of more than 20 substations, 400 KV corridors and an RE reserve zone. Karnataka has signed Rs. 4 lakh Crores worth of investment agreements for RE. This is nearly 40% of state’s local investments.

Rural demand to stay strong despite GDP dip

A report by ICRA projects India’s real GDP growth to exceed 6.5% and GVA growth to surpass 6.3% for FY26. CPI inflation is expected above 4.2%, with a fiscal deficit of 4.4% of GDP. Rural demand will likely remain strong, supported by Rabi cash flows and above-normal reservoir levels. Services exports are expected to outpace merchandise exports. Regarding inflation, the Consumer Price Index (CPI) is expected to be above 3.5 per cent, while the Wholesale Price Index (WPI) will be over 1.8 per cent for the current fiscal, the report added. ICRA has forecast the fiscal deficit to be 4.4 per cent of GDP for 2025-26, with the current account deficit projected at 1.2 per cent to 1.3 per cent during the same period. the combination of the sizeable income tax relief in the Union budget for 2025-26, rate cuts leading to lower EMIs and moderation in food inflation is expected to boost household disposable incomes.