Development Watch – Week #2 May’26

Development News

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Japan’s Mitsui to invest in Indian shipbuilding

Japan’s Mitsui OSK Lines plans to build ships in India. The company is also exploring opportunities for roll-on, roll-off terminals. MOL aims to strengthen inland logistics services. This expansion will support its leadership in shipping automobiles from India. The company sees India as a priority region for grow. India has launched its significant Bharat Maritime Insurance Pool. The initiative aims to bolster domestic maritime trade by reducing dependence on foreign insurers. The pool offers a substantial sovereign guarantee, ensuring continuous insurance coverage for vessels. This move provides crucial assurance for India’s growing maritime sector. The first insurance covers have now been issued to key entities.

Big funds to bid directly for road projects

India has opened the door for pension and sovereign wealth funds to directly bid on greenfield toll-road projects, aiming to boost private investment in infrastructure. This move relaxes eligibility norms for build-operate-transfer projects, allowing institutional investors to leverage their financial strength while partnering for construction expertise. The government seeks to significantly increase the share of BOT projects in highway awards.

Rs. 37,500 Cr coal gasification scheme

The Union Cabinet approved a Rs 37,500 crore scheme to promote surface coal and lignite gasification projects, aiming to gasify around 75 million tonnes of coal and attract investments of up to Rs 3 lakh crore. India possesses one of the world’s largest reserves of coal and lignite, with approximately 401 billion tonnes of coal reserves and around 47 billion tonnes of lignite reserves. Coal currently contributes more than 55 per cent of India’s total energy mix.

Cost saving for air lines and GIFT City leasing

Akasa Air has set up an aircraft leasing unit at Gujarat International Finance Tec-City. This move supports fleet expansion and aims to keep leasing business within India. Akasa joins other Indian carriers in utilizing GIFT City. This development is part of India’s effort to build a domestic aviation finance ecosystem. The unit will finance a majority of Akasa’s fleet. The last week, Air India’s board met to discuss cost-saving measures. Furloughs and deferred bonus payments are being considered. The airline faces challenges from the West Asia conflict, impacting operational costs. Air India Group is projected to incur significant losses. CEO Campbell Wilson will address staff in a townhall.

Agro-chemicals and value retail for Rural India

Every ten dollar move in crude oil adds roughly 50 basis points to India’s current account deficit and a similar amount to inflation. With crude elevated and the rupee under pressure, bond yields are unlikely to fall anytime soon. If currency pressure persists, the RBI could even turn more hawkish on interest rates. Food and agri prices have started moving up after years of stagnation and when that happens, rural household incomes rise. He expects this to drive spending on low-ticket discretionary items — shoes, clothing, eating out, small appliances. Key sectors include fertilizer companies, agrochemical firms with backward integration, tractor and tiller manufacturers, and value retail chains that serve the rural and semi-urban consumer.

Adani Green unit to operate in RE space

Adani Green Energy Limited has established new companies for clean energy power generation. These step-down subsidiaries were incorporated by its wholly-owned subsidiary, Adani Renewable Energy Sixty Four Limited. The new entities will focus on generating power from renewable energy sources. Adani Green Energy is a key player in developing and operating solar, wind, and energy storage solutions.

Taiwanese semiconductor Co established R&D in Noida

Taiwanese semiconductor giant MediaTek has established its second Indian R&D hub in Noida, leasing 1,04,000 sq ft at BPTP’s Capital City. This move, valued at approximately Rs. 144 crore, underscores Noida’s growing appeal for global tech firms seeking quality commercial spaces and access to talent. India continues to be a key market for MediaTek’s innovation and engineering capabilities. The new R&D facility in Noida is aligned with our efforts to expand our talent base and strengthen our research capabilities. BPTP Capital City is a Grade-A commercial development offering approximately 780,000 sq. ft. of office and mixed-use space.