Weekly News 29 January - 2 February 2024
Monday, 29 January 2024 (Financial Express) India’s renewable energy capacity up 183% in 9 yrs
India has demonstrated significant progress in the green energy sector, with renewables making up 43% of the total installed power capacity in 2023, up from 31% in 2014. The government has set an ambitious target to triple the renewable energy share to 500 GW by 2030, aiming for an annual addition of 50 GW. However, challenges lie in addressing the delayed addition of transmission lines and uncertainties about meeting such ambitious targets. Despite strides, experts express concerns about potential delays in phasing out coal-fired power due to rising domestic demand and the realization that renewable capacity additions may fall short of targets.
In the pursuit of green energy goals, government agencies like Solar Energy Corporation of India (SECI), SIVN, and NHPC are actively tendering contracts for solar, wind, and hydro capacity additions. While interregional transmission capacity has increased, there are apprehensions about the efficient integration of renewable capacities into the grid to meet peak power demand. Acknowledging the time required for the full operationalization of renewable energy, India maintains its reliance on fossil fuels to meet rising power demand during the transitional period.
Tuesday, 30 January 2024 (mint) Brazil in talks to open its dairy market for Indian produce
India and Brazil are in talks to open the Brazilian market to Indian dairy products, including camel milk and special cheeses. The collaboration comes after Brazil recently allowed Indian millet exports. The proposed partnership also includes plans to establish a centre of excellence in Amreli, Gujarat, aimed at enhancing milk production and improving herd quality. Discussions involve the potential import of camel milk, casein, and specific cheeses from India to Brazil. Additionally, plans include the establishment of sister cities, a Zebu Research Institute in both countries and a joint research institute in India with Brazilian cooperation, emphasizing the strategic move to foster dairy cooperation between the two nations.
Ravin Saluja, director of Sterling Agro Industries Limited (Nova Dairy), highlights the potential for mutually beneficial outcomes in the global dairy industry through enhanced cooperation. While India is the world's top milk producer, there is room for improvement in productivity levels. Collaborating with Brazil, known for its expertise in dairy farming practices and technology, could drive economic growth, enhance food security, and contribute to rural development by improving milk yield per cow.
Wednesday, 31 January 2024 (The Economic Times) Dual-Use Products’ Exports may be Eased for Select Cos
The Director General of Foreign Trade (DGFT), Santosh Kumar Sarangi, mentioned that the government is considering easing export norms for certain dual-use products for companies with a proven track record. Dual-use goods have both industrial and military applications, including high-tech equipment, chemicals, biotechnology, defence, aerospace goods (such as drones), electronics, semiconductors, telecommunications, and information security. Sarangi emphasized the sensitivity of dual-use goods, which could cause disruptions if misused by non-state actors. The government aims to collaborate with industry, the Ministry of External Affairs, and customs to liberalize sectors for responsible companies with a proven export track record, while still addressing concerns about the potential misuse of high-end technologies.
Commerce Secretary Sunil Barthwal highlighted the need for a balancing approach in trade for Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET), which have dual-use applications. Concerns were raised about the misuse of high-end goods and technologies in the Suez Canal, emphasizing the importance of policies to prevent such misuse. The government aims for free trade growth while ensuring it doesn't become a tool for mass destruction or terrorism. Sarangi stressed the need for an internal system to ensure responsible use and compliance with guidelines for high-end technologies and SCOMET items.
Thursday, 1 February 2024 (mint) India to aid ‘mindfulness city’ airport
India and Bhutan are in early-stage discussions to expand and develop Gelephu airport, as Bhutan aims to transform Gelephu into a South Asian investment hub. Reports suggest a master plan for the airport, covering over 500 acres, with proposals to enlarge its size and runway length. The Airports Authority of India is in talks with Bhutan, although details remain in the early stages. Gelephu has gained strategic importance for Bhutan's global economic outreach, with plans for a Gelephu Mindfulness City outlined by King Jigme Khesar Namgyel Wangchuk during the National Day address. The envisioned expansion aligns with Bhutan's broader ambitions for enhanced physical connectivity with India, supporting the proposed Special Administrative Region (SAR) in Gelephu, set to reshape Bhutan's economic landscape and attract investments.
The proposed SAR, covering 1,000 sq. km in Gelephu, is seeking autonomy and legal independence to secure investments. Bhutan is exploring collaboration with GMR for the SAR's development, including essential infrastructure like an airport and roads. Gelephu, one of Bhutan's four airports, is anticipated to play a crucial role in international flights, complementing the country's current operations from Paro airport via state carrier Druk Air. Cooperation on aviation between India and Bhutan has historical roots, and despite operational challenges, Gelephu recently received an aerodrome certificate from the Bhutan Civil Aviation Authority in September 2023, indicating readiness for international flights.
Friday, 2 February 2024 (Financial Express) Interim Budget 2024: Balancing ease of doing business with ease of living
The interim budget has defied populist expectations, maintaining fiscal policy continuity with no major tax or expenditure changes. The focus remains on balancing growth and development, emphasizing ease of doing business and living. Notably, the improved quality of expenditure is evident, highlighted by a decline in the revenue deficit as a share of the fiscal deficit. Despite concerns about higher public debt, the budget maintains a positive fiscal trajectory, with a 5.8% fiscal deficit in 2023-24, surpassing predictions. However, servicing the growing debt raises concerns, as interest payments increase to 25% of total revenue receipts, emphasizing the need for a robust medium-term expenditure framework.
The interim budget outlines a long-term vision for "Viksit Bharat," focusing on governance, development, and performance over the next 25 years. Initiatives toward this direction, coupled with continued support for states' capital expenditure and reforms, aim to ensure balanced regional growth. The emphasis on outcomes over outlays in social sector programs reflects efforts to improve efficiency in public expenditures. While the budget brings continuity and predictability, addressing medium-term fiscal concerns is crucial, and expectations are that the full budget from the new government will focus on these challenges.
