Development Watch – Week #1 Jan’26
Development News
Rural development at the forefront of budget 2026
Infrastructure spending, especially on roads, highways, and rural development, is expected to be a central lever for steady growth in 2026. Budget 2026 is expected to reinforce public investment as the anchor of economic resilience and inclusive growth. While actual spending on roads and highways in 2023-24 was Rs. 2,75,986 Crores, budgeted allocation for 2025-26 is Rs. 2,87,333 Crores. It reflects the government’s view that road building delivers quick economic spillovers, improves logistics, and supports employment, particularly in semi-urban and rural areas. Similarly, actual expenditure in 2023-24 on rural development was Rs. 1,63,642 Crores while budget allocation in 2025-26 is Rs. 1,90,406 Crores. This shows continued emphasis on rural roads, livelihoods, and employment generation as part of the broader growth strategy.
Rs. 44,700 Crores for domestic maritime industry
The union government has unveiled operational guidelines for the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS). Both schemes will be valid until March 2036 with a possible extension to 2047. These guidelines create a stable and transparent framework that will revive domestic shipbuilding, boosting forward and backward linkage. Under SBFAS, which has a total corpus of Rs 24,736 crore, the government will provide financial assistance ranging from 15% to 25% per vessel, depending on the vessel category. The scheme introduces graded support for small normal, large normal and specialised vessels, with stage-wise disbursement linked to defined milestones and backed by security instruments. Incentives for series orders are also included.
Rs. 1,000 Crores infra projects for Madhya Pradesh
Ceigall Infra Projects Private Ltd has received a Letter of Award (LoA) from Madhya Pradesh Road Development Corporation Ltd (MPRDC) for the construction of the Indore-Ujjain Greenfield (Access Control) four-lane highway. The project will be executed under the Hybrid Annuity Model (HAM) over a period of 24 months. The project will play a critical role in improving regional connectivity between Indore and Ujjain, and enhance access to key economic and religious hubs in Madhya Pradesh. Ceigall India is an infrastructure engineering, procurement, and construction company, undertaking specialised structural works such as elevated roads, flyovers, bridges, railway overbridges, tunnels, highways, expressways, and runways.
TATA Power to boost rooftop solar in Bengal
Tata Power Renewable Energy Limited (TPREL) signed a memorandum of understanding (MoU) with the Bengal Chamber of Commerce and Industry (BCC&I) to accelerate the adoption of rooftop solar solutions among micro, small and medium enterprises (MSMEs) in the state. TPREL said its rooftop solar arm, Tata Power Solaroof, has already facilitated the installation of over 85 MWp of rooftop solar capacity in West Bengal through more than 20 channel partners, enabling localised engagement and execution across industrial clusters. At the national level, Tata Power Solaroof operates through a network of over 650 channel partners, supporting rooftop solar deployment across the country. Tata Power’s rooftop solar installations in India have crossed 3 lakh, accounting for over 4 GWp of installed capacity.
New metro corridors to curb Delhi air pollution
The Union Cabinet approved three new metro corridors worth Rs 12,014.91 crore to ease traffic congestion in the national capital and curb air pollution. Funds for the Delhi Metro’s Phase – V(A) project will be sourced from centre, the Delhi state government, and international funding agencies. Union railways, information technology, and information broadcasting minister Ashwini Vaishnaw said the newly approved Central Vista corridor will provide connectivity to all the Kartavya Bhawans thereby providing door-step connectivity to the office goers and visitors in this area. The centre and Delhi government are expected to contribute Rs 1759 crore each for these new lines. While the Delhi Metro Rail Corporation (DMRC) will secure a Rs 5,278 crore loan from multilateral agencies. The Aerocity – IGD Airport Terminal 1 and Tughlakabad – Kalindi Kunj sections will be an extension of the Aerocity-Tughlakabad corridor and will boost connectivity of the airport with the southern parts of the national capital in areas such as Tughlakabad, Saket, and Kalindi Kunj among others.
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.