Development Watch – Week #2 Aug’26

Development News

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Railway coach supply to Bangladesh resumes after 10 years

Indian Railways will re-start supplying passenger coaches to Bangladesh Wednesday. The Rail Coach Factory (Kapurthala), will rollout a 19 passenger coach rake for Bangladesh Railway Wednesday. An official statement said this comprises three AC Sleeper Cars, three AC Chair Cars, 11 Non-AC Chair Cars and two Power Cars. This is also the first rake export to Bangladesh after the regime change which saw the ouster of former prime minister Sheikh Hasina. India had earlier supplied 120 broad gauge (BG) Passenger Coaches in 2015-16. RITES Limited, the export arm of Indian Railways, is currently executing this contract to supply 200 Broad Gauge passenger coaches to Bangladesh Railway. European Investment Bank is funding this Rs 915 crore project which was awarded to RITES in May 2024 through a global competitive bidding process.

Taipei-Hyderabad-Dubai Cargo corridor with Emirates

Hyderabad Airport recently launched Emirates SkyCargo’s new Boeing 777 Freighter service. It establishes a vital connection between Taipei, Hyderabad, and Dubai. This dedicated freighter enhances trade links and significantly boosts cargo movement in the strategically important Taipei-Hyderabad-Dubai corridor. The initiative ensures efficient handling of high-value shipments and strengthens Hyderabad’s reputation as a central logistics hub.

Ethiopian airline veteran appointed Air India CEO

Tewolde Gebremariam, known for crisis management, will lead Air India. He previously managed Ethiopian Airlines through major global crises. The airline faces safety concerns and financial losses after recent incidents. Modernising the fleet and navigating airspace restrictions will be his key tasks. Mr. Tewolde faces the tough task to restore confidence in Air India’s safety after a crash last year killed 260 people. His challenges also involve stemming losses, modernizing an ageing fleet and navigating Pakistan’s ban on Indian carriers using its airspace. In 11 years as ⁠CEO of Ethiopian ‌Airlines, he turned it into Africa’s leading carrier. It spent $1 billion to build businesses around its Addis Ababa ​hub, including the continent’s ​largest cargo terminal, an aviation university, maintenance hangars, a catering centre and a 1,000-room hotel.

Moscow-India rail link proposal

Russia is investigating innovative overland rail routes to connect with India. It seeks to lessen reliance on maritime chokepoints such as the Strait of Hormuz and Bosphorus. This proposed rail corridor, traversing nations like Turkmenistan, Iran, Afghanistan, and Pakistan, could provide a viable alternative to conventional shipping methods. For now, the proposal remains an idea to be explored rather than a confirmed rail project. Its feasibility will depend on infrastructure availability, political agreements, security conditions and the economics of moving freight across such a long and complex route.

Renewable energy capacity crosses 300 GW

India’s non fossil power capacity has crossed 300 GW, with solar accounting for more than half of it. The milestone puts the country at 60% of its target of having 500 GW non-fossil capacity by 2030. Solar accounted for 164.59 GW of this, followed by wind (58.14 GW) and large and small hydropower projects (57.24 GW). Bio power contributed 11.75 GW and nuclear, 8.78 GW to the total capacity. India added 55.29 GW of non-fossil capacity in 2025 26, including 44.6 GW of solar and 6 GW of wind. The capacity of manufacturers listed under the Approved List of Models and Manufacturer-s for solar modules has crossed 200 GW, compared with 2.3 GW in 2014. The government has used the production-linked incentive scheme and domestic sourcing requirements to support the expansion of the solar manufacturing base.

$1.5 billion sale of Indian roads

The Canada-based Public Sector Pension Investment Board is considering strategic moves for its Indian road assets. The Canadian pension fund is engaging an advisor to explore the possibility of divesting these investments, valued at approximately $1.5 billion. These assets have played a crucial role in the fund’s expansion, drawing attention from other potential investors. PSP Investments had net assets under management of C$320.6 billion ($230 billion) as of the end of March.

Parliamentary Standing Committee on transport

Headed by Rajya Sabha MP Sanjay Kumar, the parliamentary committee on transport, tourism and culture presented its 392nd report on “Enabling Inclusive, Digital and Sustainable Bus Transport: Policy, Regulation and Public-Private Partnership for Next-Gen Mobility”. It calls for greater safety of passengers and enhanced accountability of bus operators. the committee has suggested separating terminal ownership from bus operation, constituting a dedicated terminals authority on the Airports Authority model frame of a National Code for Bus Terminals within one year to enhance passenger convenience.