Page 40 - Construction_Opportunities_June_2024

INFRASTRUCTURE TICKER TAPE KARNATAKA APPROVES 64 PROJECTS WORTH `3,587 CRORE

Karnataka has approved 64 projects totaling investments
of `3,587.67 crore, projected to generate employment for
approximately 13,896 people across the state. The approvals
were made during the 146th State-Level Single Window Clearance
Committee (SLSWCC) meeting held recently. Among the significant
approvals are proposals from International Battery Company India
Private Limited and River Mobility Private Limited, with planned
investments of `390 crore and `306.9 crore respectively. These
projects are set to enhance equitable investments across various
regions of the state, particularly benefiting the districts of North
Karnataka. Industries Minister M B Patil, who chaired the meeting,
highlighted that the committee approved 13 major projects
categorized as large and medium, with capital investments
surpassing `50 crore. These projects amount to a total investment
ROADS MINISTRY SEEKS APPROVAL FOR `22 LAKH of `2,046.39 crore and are expected to create employment
CRORE HIGHWAY DEVELOPMENT PLAN for around 7,199 people. Additionally, 47 new projects with
In a significant move to bolster infrastructure, the Ministry of Road investments ranging from `15 crore to `50 crore were sanctioned,
Transport and Highways has sought Cabinet approval for a `22 totaling `1,058.55 crore. Four other capital investment schemes
lakh crore highway development plan, targeting the construction amounting to `482.73 crore were also approved, which will create
of approximately 30,600 km of highways by 2031-32. employment opportunities for about 150 people. The meeting was
The proposal, submitted to the Finance Ministry and shared with attended by several key officials, including Dr. Shalini Rajneesh,
key ministries last week, outlines the construction of 18,000 km IAS, Additional Chief Secretary & Development Commissioner,
of expressways and high-speed corridors, the decongestion of Government of Karnataka; Shri Selvakumar S, IAS, Principal
4,000 km of national highways around urban areas, and the Secretary, Department of Commerce and Industries; Gunjan
development of strategic and international roads. Notably, 35% Krishna, IAS, Commissioner for Industrial Development and Director,
of the investment is expected to come from the private sector. Department of Commerce and Industries; Dodda Basavaraju, MD
Sources from the Times of India reveal that the master plan is of Karnataka Udyoga Mitra; Darshan H.V, IAS, Director of Electronics,
divided into two phases. Officials in an inter-ministerial meeting, IT/BT, and other senior officers from various departments.
chaired by Road Transport Secretary Anurag Jain, confirmed
that all projects in phase one will be tendered by 2028-29 and RENEWABLE ENERGY: GOVT APPROVES TRANSMISSION
completed by 2031-32. The `22 lakh crore budget is allocated PROJECTS WORTH `13,595 CR
solely for phase one projects. The Centre recently announced the approval of new Inter State
The ministry has also requested a 10% annual increase in its Transmission System (ISTS) schemes to evacuate 9 gigawatts (GW)
budget allocation. The interim budget allocated `2,78,000 crore of renewable energy from Rajasthan and Karnataka. The schemes,
to the ministry, marking a 2.7% increase from the previous year. to be implemented through tariff-based competitive bidding
The financial requirements for the second phase, which involves (TBCB) mode, are part of the plan to achieve 500 GW of renewable
developing an additional 28,400 km, will be determined at a later energy capacity by 2030, with 200 GW already connected. The
date. The sanctioning and awarding of phase two projects are Rajasthan Renewable Energy Zone (REZ) evacuation scheme will
planned for completion by 2033-34, with construction wrapping transfer 4.5 GW of power, including 1 GW from the Fatehgarh
up by 2036-37. complex, 2.5 GW from the Barmer Complex, and 1 GW from the
The ministry’s development plan is informed by an assessment Nagaur (Merta) Complex. This power will be routed to the Mainpuri
of GSTN data, analyzing commodities transported by road and Region, Fatehpur, and Orai in Uttar Pradesh. The project, costing
rail. The data from 2021-22 shows that 73% of freight was moved approximately `12,241 crore, is expected to be completed
by road, with railways handling around 23%. For distances under within two years. In Karnataka, a system strengthening scheme
350 km, 82% of commodities were transported by road, while for will evacuate 4.5 GW of renewable energy from the Koppal and
distances over 600 km, 62% were road-transported. Gadag areas. This scheme, with a budget of about `1,354 crore,
Once the plan is fully realized, the average travel speed for trucks is slated for completion by June 2027. The government remains
on the national highway network is expected to increase from the focused on expanding transmission and storage capacities to
current 47 kmph to 85 kmph. In comparison, the average travel integrate more renewable energy into the grid and ensure grid
speed on highways is over 100 kmph in the US and 90 kmph in stability. Earlier this month, Union Power Minister Manohar Lal
China. This speed increase is anticipated to help India reduce Khattar, who recently assumed office, discussed enhancing
logistics costs to 9-10% of GDP. storage and transmission capacities with senior officials.
The development of high-speed corridors aims to ensure A February 2024 report by CareEdge Ratings highlighted that India
accessibility within 100-150 km from any part of India. Presently, needs around 12 GW of storage capacity, assuming 4 hours of
only 3,900 km of high-speed corridors are operational, with an storage per GW for FY24. This requirement is projected to grow to
expected increase to around 11,000 km by 2026-27. approximately 70 GW by FY30.

40 CONSTRUCTION OPPORTUNITIES|JUNE 2024