Daily News - Wednesday, 18 December 2024

‘Deploy Made in India machinery to reduce infra project costs’ (The Hindu)

Union Minister Nitin Gadkari, speaking at Assocham’s annual infrastructure conference, urged stakeholders to adopt ‘Made in India’ machinery to reduce project costs while maintaining quality, especially for critical bridge and tunnel projects. He emphasized the importance of integrating advanced technology with cost-effective solutions to achieve the national mission of self-reliance in infrastructure. Notably, he highlighted that 55% of the Zojila tunnel project, a crucial initiative, has been completed. 

⁠Imports from UAE, S. Africa grew in triple digits in Nov (Business Standard)

⁠India’s merchandise exports contracted by 4.9% in November, driven by reduced shipments to key markets such as the US, Netherlands, China, and Bangladesh, with export contraction influenced by falling petroleum product prices and regional economic challenges. Meanwhile, imports surged to a record $70 billion, fueled by triple-digit growth in shipments from the UAE, South Africa, and Switzerland, primarily due to $14.9 billion worth of gold imports. Analysts, including CRISIL, warn that China’s deflationary export push, amid US tariff hikes, could increase India’s imports of cheaper Chinese goods, impacting domestic markets and other Asian economies. 

⁠India scraps duty-free import scheme for solar power equipment (mint)

India has revoked the duty-free import policy for solar power generation equipment, effective immediately, prohibiting bonded warehouses for solar-related activities to address revenue leakages and prevent misuse of customs benefits. This change impacts companies relying on the Manufacturing and Other Operations in Warehouse Regulations, forcing the de-bonding of solar power equipment, triggering customs duty payments, and potentially causing significant cash flow disruptions. Experts warn that retroactive duty obligations and unadjusted tariffs in power purchase agreements could reduce profitability for solar projects, despite existing industry incentives like GST concessions and subsidies.

RE: Minister to meet bank chiefs (mint)

Union Minister Pralhad Joshi announced plans to meet bank heads and industry leaders in January to discuss increased financing for renewable energy (RE) projects, essential for achieving India’s target of 500 GW non-fossil power capacity by 2030, requiring an estimated ₹42 trillion investment. Highlighting India’s growing RE market, he noted a fourfold increase in capacity addition to 2.3 GW last month compared to November 2023, alongside $6.1 billion in foreign direct investment over the past three fiscal years. A report by CII and EY emphasized the need for improved intra-state transmission networks in renewable-rich states and significant investment to achieve a long-term target of 1,600 GW by 2047.

⁠Smart cities: Panel urges third-party audit of projects (mint)

A parliamentary committee has urged the Ministry of Housing and Urban Affairs to conduct a third-party assessment of the Smart Cities Mission to identify and address gaps, particularly in smaller cities where progress has been slower due to weaker organizational and financial structures. While 7,151 out of 8,010 projects worth ₹1.43 trillion have been completed as of June 15, the committee expressed concern over delays and reiterated the need for detailed evaluations before launching the mission’s next phase. The ministry has initiated 50 theme-based impact assessment studies across 100 smart cities to analyze project outcomes and strengthen urban local bodies, with the committee seeking updates on these findings and subsequent actions.