Development Watch – Week #3 May’26

Development News

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Solar Industry seeks higher power prices amid Record Demand

India’s solar industry is urging the power market regulator to raise electricity price limits on exchanges. Companies say the current cap hinders profitability and investment, especially with demand soaring due to heat waves. Peak power demand has hit record highs recently. The industry group argues the cap prevents them from recovering losses during low demand periods.

Incentives to boost floating solar panel installation

India plans incentives for floating solar panels to spread renewable energy across the country. This aims to avoid concentration in a few states. The nation envisions significant renewable energy capacity and battery storage by 2050. Efforts are underway to boost domestic manufacturing of solar components. Addressing renewable energy curtailment and strengthening grid infrastructure are top priorities. the NITI Aayog projects by 2050, we would require 1,800 GW of RE, along with a similar quantum of battery energy storage systems (BESS), that is about 2,000 GWh of BESS.

Official glimpse of First ever Bullet Train

India’s first bullet train for the Mumbai-Ahmedabad corridor is set to transform travel. An image of the high-speed train has been unveiled at the Ministry of Railways. This 508-km link will connect Mumbai to Ahmedabad, reaching speeds of 320 km/h. The corporation is a joint venture of the Government of India and participating state governments for implementing high-speed rail projects.

AI enabled savings for Air India

Air India is leveraging AI extensively, developing over 30 in-house tools to save approximately Rs 100 crore annually. These AI applications range from customer service, reducing call volumes by 50%, to complex operational tasks like predictive maintenance and optimizing on-time performance across its fleet. This digital overhaul aims to enhance efficiency and address the airline’s accumulated losses. Rapidly evolving generative AI developed by Microsoft, Anthropic or Salesforce is helping the carrier communicate with passengers better, according to Ramaswamy. The airline’s chat bot can read through customer emails and booking tickets and take logical decisions such as whether to issue a refund or not. This has resulted in a 50% reduction in call volumes at its call centre. Air India is using an in-house developed AI tool to unlock operating patterns on a real-time basis. By the time a trend starts to evolve, the software has already flagged it, allowing its Mascot team to be proactive rather than reactive.

Water Metro Phase 1 for Guwahati

The Union Minister of Ports, Shipping & Waterways (MoPSW), Sarbananda Sonowal chaired a review meeting on the rollout of the much-anticipated Water Metro services in the country. The Centre has advanced plans to roll out Water Metro services in 18 cities, with Guwahati among those identified for Phase I. Cities including Srinagar, Patna, Varanasi, Ayodhya and Prayagraj are also part of Phase I, while Tezpur and Dibrugarh in Assam have been proposed for Phase II of the project. The Ministry has simultaneously circulated the Draft National Water Metro Policy, 2026 for inter-ministerial consultations, indicating a push to formalise a national framework for urban water transport.

Road InvITs to grow 30% in FY 2026

Road InvlTs assets will grow 30 percent this fiscal year, leading to an impressive Rs3.9 lakh crore in assets managed by March 2027. The growth is driven by monetisation of toll road assets by NHAI and hybrid annuity model asset sales. Investor pool is widening and leverage is controlled. This will enhance resilience and keep credit profiles strong. The mix of InvIT AUM is currently dominated by toll road assets, which form 85 per cent.

Highway projects worth Rs. 34,000 Cr for Delhi-NCR

Delhi-NCR is set to receive a major transport upgrade. Over ₹34,000 crore will be invested in new highway projects. These include expressways, ring roads, tunnels, and elevated corridors. The government aims to create a modern and future-ready transport network. This initiative will boost connectivity, reduce fuel use, and promote economic growth in the region.