Development Watch – Week #5 July’26

Development News

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Adani’s stakes in British Ports and Airlines in India

Adani Ports is about to bid for 64% controlling stake in Associated British Ports in the UK. Two Canadian pension funds are selling their controlling stake in Associated British Ports. ABP owns and operates twenty-one key ports across the United Kingdom. The company is also a partner for the offshore wind industry. Adani Group is also seeking to dilute a clause preventing airport operators from holding airline stakes. This change would enable the conglomerate to launch its own airline operations. The government is consulting legal experts on amending the existing airport privatization agreements. Such a move could introduce competition into the domestic aviation market. However, rivals anticipate strong opposition and regulatory scrutiny over potential advantages.

SC rejects directive granting Centre’s power to grant ECs

The Supreme Court has quashed the Centre’s 2021 Office Memorandum regarding retrospective environmental clearances. This significant order constrains firms from commencing projects without prior environmental approval. The judgement will apply prospectively, leaving earlier green nods undisturbed by the court. A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi gave a unanimous verdict, also providing some leeway to the government and held that the judgement will apply prospectively, and the projects granted green nod earlier will remain undisturbed. The bench reaffirmed that prior environment clearances are the governing rule under the environmental framework and projects cannot ordinarily commence operations first and seek approval later.

China’s reliance on coal for RE megabases

China builds more wind and solar power than the world combined. Inadequate transmission links and coal reliance limit renewable energy use. Green power from the north needs ultra-high voltage lines to reach eastern cities. Significant outbound transmission capacity is required by the year 2030. Energy storage should back up renewables instead of coal power. Wind and solar make up around 20% of the power sent through China’s ultra-high voltage ‌direct current (UHVDC) transmission ⁠network, which is generated in the sparsely populated north and north-west.

Roadblocks due to unavailability of solar parts

In a concerning turn for India’s renewable energy sector, solar panel manufacturers are ceasing production because vital components are in short supply domestically. This hiccup leads to prolonged waits for crucial parts, ultimately threatening employment and investments. Additionally, with looming deadlines for India’s 2030 solar capacity targets, China’s technology export restrictions complicate the landscape, raising costs and delaying the transition to clean energy solutions.

ACME solar secures Rs. 3,405 Cr PFC funding

ACME Solar secured financing from Power Finance Corporation for its renewable energy project. This funding will support the development and construction of the ACME Urja One project. The project combines solar, wind, and battery storage technologies for reliable power supply. It is expected to be commissioned next year and has a 25-year power purchase agreement. This financing brings ACME Solar’s total funding raised this fiscal year to Rs 6,051 crore.

Indian EVs rise amid global fuel price shocks

India-made electric cars are rapidly gaining ground overseas. There has been a 14-times surge in exports in the June quarter due to higher fuel prices caused by the US-Iran war This has pushed consumers worldwide towards more affordable means of personal transportation. Exports rose to 15,641 units in the three months ended June, from 1,122 units a year earlier, showed industry data. This accounted for more than half of the 28,652 units exported last fiscal year. India-made vehicles are well-received in developed markets such as Europe and Japan on the strength of their quality and technology. Maruti Suzuki has added 20 export destinations in the previous quarter, mostly in Europe. Mahindra & Mahindra (M&M) too has started work on specific variants of the BE 6 and XEV 9e SUVs for the UK, to tap into opportunities under the India-UK Comprehensive Economic and Trade Agreement (CETA).