57 Housing Projects Face Deregistration Amid Unviability Concerns in MMR

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January 24, 2025

57 Housing Projects Face Deregistration Amid Unviability Concerns in MMR

Maharashtra’s real estate sector has been shaken as the Maharashtra Real Estate Regulatory Authority (MahaRERA) prepares to deregister 57 housing projects across the state. The deregistration drive, prompted by developers citing unviability, affects major players, including nine projects from Lodha Group and four from K Raheja Corp Real Estate. This development underscores the challenges faced by developers in the post-pandemic market, as rising costs and sluggish sales dampen the viability of several projects.

In the Mumbai Metropolitan Region (MMR) alone, 25 projects are set to be deregistered, reflecting the region’s disproportionate share of the impact. Among the affected are Lodha’s Palava series projects and K Raheja’s Pirangut developments near Pune. Other high-profile names include Piramal Realty’s Mulund-based Revanta Tower 5 and Lokhandwala Infrastructure’s LB One in Worli. This trend reveals the precarious balance developers must maintain between market demands and operational sustainability.

Unpacking the Reasons Behind Deregistration
MahaRERA allows deregistration for various reasons, including lack of funds, litigation, slow sales, and changes in regulations. Developers are required to ensure no existing homebuyers or compensate them for any inconvenience caused. In the case of larger projects, a two-thirds majority consent from homebuyers is mandated.

Lodha Group clarified that the projects listed for deregistration were routine decisions, reflecting changes in their business strategies. However, the sheer number of projects raises questions about the larger economic and regulatory environment. Similarly, K Raheja Corp has remained tight-lipped, while Piramal Realty and others have not responded, further fuelling speculation about the industry’s structural challenges.

Civic and Urban Development Perspectives
The deregistration of housing projects also highlights critical urban challenges. The stalling of projects could exacerbate housing shortages, particularly in urban hubs like Mumbai and Pune. These cancellations point to the difficulty of meeting India’s ambitious housing targets under schemes such as “Housing for All.” Moreover, they reflect a deeper disconnect between urban planning and the realities of real estate economics.

Developers and policymakers must work together to mitigate such disruptions. Streamlined approval processes, financial incentives, and enhanced coordination between stakeholders could prevent similar occurrences in the future. The impact of such large-scale cancellations is also felt by ancillary industries, such as construction materials and labour markets, raising concerns about broader economic implications.

Sustainability and Future Directions
From a sustainability perspective, these deregistrations offer a dual narrative. On one hand, stalled projects may reduce the immediate strain on natural resources, such as water and energy, which are heavily consumed during construction. On the other hand, abandoned sites contribute to urban blight, creating wastelands in prime locations.

For the real estate sector to align with sustainable urban development goals, an emphasis on eco-friendly construction and energy-efficient designs is essential. Developers should prioritise smaller, phased projects to adapt to fluctuating market demands while minimising financial risk. Furthermore, incorporating renewable energy and green infrastructure can enhance project viability while contributing to environmental sustainability.

Haryana Proposes New Tree Felling Policy to Streamline Urban Development

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January 23, 2025

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Haryana Proposes New Tree Felling Policy to Streamline Urban Development

The Haryana government has proposed a new policy on tree felling in non-forest areas. The policy, which will significantly impact urban expansion and infrastructure development, seeks to simplify the process of obtaining permission to cut trees on land acquired or allotted by government bodies for residential, industrial, or infrastructure projects.

Currently, the forest department’s approval is required for any tree felling, regardless of whether the land is privately owned or public. However, under the new proposal, this requirement would be lifted in urban areas where plots are designated for development by government agencies. The policy also aims to replace outdated rules, particularly those concerning land under the Punjab Land Preservation Act (PLPA) of 1900, allowing developers and landowners more freedom to manage trees on their land without needing to go through lengthy approval processes. While the policy aims to streamline urban development, it also places importance on the preservation of certain native trees that are ecologically significant. Trees like peepal, bargard, gulhar, pilkhan, khejari, and others will be protected under the new guidelines. However, the policy will allow for the removal of less ecologically important species such as eucalyptus, poplar, bakayan, and mesquite trees, even when they stand outside forest areas. Farmers and landowners will also be able to remove unproductive fruit trees without permission, provided they intend to replace them with high-density, high-yielding varieties. This move is expected to help in modernising orchards and boosting agricultural productivity.

Although the new policy aims to simplify the tree-felling process, experts have raised concerns about its potential environmental impact. The proposal appears to deregulate tree felling, particularly in urban areas where rapid development is underway. Cities like Gurgaon and Faridabad have already witnessed significant deforestation due to infrastructure projects, including the removal of thousands of trees for flyovers and road widening projects. Critics worry that the new policy could exacerbate this trend, leading to a further decline in Haryana’s tree and forest cover. According to a recent Forest Survey of India report, Haryana’s forest cover has decreased by 13.9 square kilometres between 2021 and 2023, with significant loss observed in Gurgaon. Additionally, a large portion of the state’s land, approximately 8.2%, has been affected by desertification.

Despite concerns about the environmental impact of the new policy, the state government is also pursuing initiatives to protect its natural heritage. In a positive move, Haryana has started granting “Pran Vayu Devta” heritage status to trees over 75 years old. These trees are recognised for their ecological value and are protected under the new scheme, which provides financial incentives to tree owners for their conservation. So far, 3,876 trees have been given heritage status, contributing to the preservation of the state’s older tree population. Moreover, the Centre for International Forestry Research and World Agroforestry (CIFOR-ICRAF) is working with Haryana to develop a mobile application that allows farmers and landowners to document the trees they grow. The app will also assess the carbon sequestration potential of these trees, helping to understand their role in mitigating climate change by storing carbon dioxide from the atmosphere. The new tree felling policy in Haryana is part of a broader effort to balance the needs of urbanisation with ecological preservation. While it promises to simplify processes and facilitate development, the challenge will be ensuring that the environment is not compromised in the pursuit of progress. As urbanisation accelerates across Haryana, the state must find ways to protect its natural resources while fostering economic growth.

BMRCL Kicks Off Land Acquisition for Namma Metro Phase 3 Expansion

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January 23, 2025

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BMRCL Kicks Off Land Acquisition for Namma Metro Phase 3 Expansion

The Bangalore Metro Rail Corporation Limited (BMRCL) has officially initiated the land acquisition process for Namma Metro Phase 3. The project, expected to transform the city’s transportation landscape, will connect crucial locations across the city, making commuting more efficient for millions of passengers.

As part of the initial phase, BMRCL has acquired 26,811 square metres of land for the stretch from JP Nagar Phase 4 to Mysuru Road Metro Station. The project is part of an ambitious plan to expand the metro network, which will include a series of interchange stations and new corridors designed to improve connectivity within the city. Key stations along the Phase 3 route will include Peenya and JP Nagar on the Green Line, Mysuru Road Station on the Purple Line, and Sumanahalli on the Hosahalli-Kadabagere route. Notably, JP Nagar Phase 4 will serve as a link to the Pink Line at Bannerghatta Road, while Hebbal will become an interchange point for both the Blue Line (airport route) and Red Line (Hebbal-Sarjapur route).

Phase 3 of the Namma Metro will consist of two main corridors: Corridor 1, which stretches 32.15 km from JP Nagar Phase 4 to Kempapura, and Corridor 2, which covers 12.5 km from Hosahalli to Kadabagere. For Corridor 1 alone, BMRCL has identified approximately 1,29,743 square metres of land, which will involve the acquisition of 777 private properties. The estimated cost for this land acquisition is Rs 1,900 crore. The project will feature a double-decker viaduct, as detailed in the Detailed Project Report (DPR), ensuring that the construction will not disrupt existing roads, flyovers, or underpasses. Additionally, any further land acquisition will be done in consultation with the Bruhat Bengaluru Mahanagara Palike (BBMP), in order to minimise disruption and ensure smooth project execution.

The total estimated cost of Phase 3 is Rs 15,611 crore, with Rs 7,577 crore being sourced from loans and Rs 450 crore expected to come from non-ticketing revenues such as advertising and station naming rights. The metro expansion will require 252 new coaches and is expected to handle a daily ridership of 7.28 lakh passengers by 2028. To facilitate the construction of Phase 3, a private company has already commenced geotechnical investigations along Magadi Road. These investigations, which are necessary for determining the soil conditions, will be conducted in two phases: one covering the stretch from Mysuru Road Station to Kanteerava Studio Station and another from Hosahalli Station to Kadabagere Depot. The total cost of these investigations is approximately Rs 5.49 crore, and completion is expected within the next five months.

The land acquisition process covers several critical areas along the JP Nagar Phase 4 to Mysuru Road Metro Station stretch. Some of the key parcels of land being acquired include 1,830.87 square metres in Nainappashetti Palya, 5,187.31 square metres in Sarakki, and 4,556.46 square metres in Jaraganahalli. Other parcels include land in Kadirenahalli, Karisandra, Katriguppe, Hosakerehalli, Pantharapalya, and Nayandahalli, all of which are essential for the successful execution of the project. BMRCL officials have expressed confidence that the land acquisition process will proceed smoothly, ensuring that the Phase 3 expansion is completed on time. This will ultimately benefit the residents of Bangalore, providing them with a more robust and efficient metro system that is set to play a pivotal role in reducing traffic congestion and improving air quality. As Bangalore continues to grow, Phase 3 of Namma Metro will be a key part of the city’s evolving public transportation network, making it easier for commuters to navigate the urban sprawl and improving the quality of life for residents.

Russian Coal and Steel Exports to China Decline Amid Global Shifts in Trade

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January 23, 2025

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Russian Coal and Steel Exports to China Decline Amid Global Shifts in Trade

In 2024, Russia’s exports of coal and steel to China saw significant declines, marking a notable shift in the economic relationship between the two countries. While China continued to be a vital partner for Russia amid the ongoing geopolitical tensions, the shrinking exports underscore broader global trade dynamics and the challenges posed by Moscow’s increasing isolation from Western markets.

China, the world’s largest coal importer, reached a historic high by importing 543 million tons of coal in 2024, a 14% increase from the previous year. However, Russian coal exports to China fell by 7%, amounting to 95.1 million tons. This decline made Russia the only major coal exporter to China to experience a drop in shipments, despite the country’s growing demand for the resource. In contrast, Mongolia and Australia saw significant increases in their coal exports to China, with Mongolia’s shipments rising by 19%, and Australia’s skyrocketing by 60%, each reaching nearly 83 million tons.

Mongolia’s proximity to China, along with its expanding rail infrastructure and long-term contracts with Chinese firms, has helped it emerge as a key supplier of high-quality coal to China’s steel industry. Russian coal, however, has faced numerous challenges, including Western sanctions, rising production costs, and logistical inefficiencies. These factors led to a cumulative loss of 91 billion rubles ($1 billion) in the first nine months of 2024, the highest among all Russian sectors. Nearly half of Russia’s coal enterprises are reportedly operating at a loss, prompting emergency support measures from President Vladimir Putin in December.

The downturn in coal exports was mirrored in Russia’s steel sector, with steel exports to China halving to just $368.9 million in 2024, the lowest since 2019. Semi-finished iron and steel product shipments dropped by 54%, and exports of flat-rolled alloy steel products saw a staggering eightfold decrease. Russia’s total loss in steel and iron exports to China amounted to $408.9 million, with gains in other metal categories failing to make up for the shortfall. By the year’s end, Russia ranked just 10th among China’s steel suppliers, trailing countries like Indonesia, Japan, and South Korea.

Overall, the trade between Russia and China showed signs of stagnation for the first time since Russia’s invasion of Ukraine in 2022. The growth rate of overall trade slowed to just 1.9% in 2024, down from 26% in 2023. While Chinese exports to Russia grew by 5%, Russian exports to China saw a modest increase of only 1%. Key Russian commodities like oil and liquefied natural gas (LNG) also experienced minimal growth, with LNG revenues declining by 6%, reaching $4.6 billion. These trends highlight the growing complexity of Russia-China trade relations as Russia grapples with the consequences of sanctions and global shifts in supply chains. The challenges faced by Russia’s coal and steel industries, coupled with stagnation in broader trade, suggest a need for strategic realignment if Russia is to maintain its position as a key supplier to China in the future.

ArcelorMittal Kryvyi Rih Increases Production but Fails to Break Even in 2024

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January 23, 2025

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ArcelorMittal Kryvyi Rih Increases Production but Fails to Break Even in 2024

In 2024, PJSC ArcelorMittal Kryvyi Rih, Ukraine’s largest mining and metallurgical enterprise, achieved significant increases in production across all product categories compared to 2023. However, despite these gains, the company was unable to reach breakeven due to a combination of persistent challenges stemming from the ongoing conflict in the region and other operational hurdles.

The war continues to exert a profound impact on the company’s operations, affecting everything from production processes to logistics and market access. Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih, explained that despite efforts to cut costs, optimise consumption, and manage production to mitigate losses, a number of external factors hindered the company’s ability to achieve financial equilibrium. Key issues included disruptions in the operations of blast furnaces, which were exacerbated by a fire in the coke oven battery due to a power cut during the summer. Additionally, the company faced expensive logistics, an unstable energy supply owing to constant attacks, shortages of personnel, and a challenging foreign market environment.

These combined factors significantly impacted the company’s competitiveness, further driving down its financial performance. Nevertheless, despite these ongoing challenges, ArcelorMittal Kryvyi Rih demonstrated resilience. The steelmaker temporarily reached 50% of its steel production capacity mid-year. The mining division operated at 70-75% of pre-war levels, leading to a notable increase in production. Pig iron production saw a 42.7% year-on-year growth, reaching 2.17 million tons, while steel production surged by 69.9% to 1.65 million tons. Rolled steel output also saw a rise of 72.1%, reaching 1.53 million tons. Additionally, coke production increased by 48.5%, and iron ore production jumped by 68.3% compared to 2023. Despite the operational and economic difficulties, ArcelorMittal Kryvyi Rih remains committed to its long-term objectives. The company is continuing to invest in vital infrastructure projects, including the construction of the Third Map tailings facility, with the first phase completed in 2024.

Looking ahead, Longobardo stressed that the company’s goal for 2025 is to achieve self-sufficiency without relying on financial support from its parent group, which has provided assistance during these challenging times. With optimism for Ukraine’s eventual recovery, ArcelorMittal Kryvyi Rih is dedicated to staying in the country and contributing to its reconstruction once the conflict ends. In 2023, the company had faced similar challenges, producing 1 million tons of steel, 1.5 million tons of pig iron, and 0.9 million tons of rolled products, while also paying over UAH 4 billion in taxes and fees to the Ukrainian government.

Mobile Sleeping Hut Merges Stainless Steel and Inflatable Dome for Sustainable Living

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January 23, 2025

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Mobile Sleeping Hut Merges Stainless Steel and Inflatable Dome for Sustainable Living

A groundbreaking innovation in mobile living, the Esch 22 Space Station (E22SSPIU!) designed by the architecture firm 2001, offers a unique solution for adaptable, sustainable housing. Located in Esch-sur-Alzette, Luxembourg, the E22SSPIU! presents a futuristic mobile sleeping hut that combines a streamlined stainless steel trailer with a double-shell inflatable dome, providing an efficient and eco-friendly living space.

In its compact form, the E22SSPIU! resembles a modern stainless steel trailer equipped with all the essentials for comfortable living, including a bath, kitchen, and dining area. This minimalist base allows for easy transport from one location to another, making it a versatile option for those seeking mobility. Once stationed, however, the structure undergoes a remarkable transformation. Two lateral wings unfold, creating a circular nine-meter platform on top of the trailer, which features a cork surface to enhance both comfort and sustainability. Above this platform, a double-shell pneumatic dome is inflated, providing a spacious and climate-responsive sleeping area. The dome adapts to varying environmental conditions, offering a comfortable living space regardless of the external climate. The entire structure can accommodate up to six people, creating a unique, mobile habitat that is both practical and adaptable to different settings.

The E22SSPIU! was created with the intent to explore architecture’s relationship with natural resources like soil, water, and energy. Designed by the Esch-Alzette-based team at 2001, it was also developed to reflect the cultural and environmental diversity of the city during its tenure as the European Capital of Culture. The project raises important questions about the dependence of architecture on traditional resources and encourages a deeper engagement with ecological and cultural contexts. By incorporating lightweight materials and a transformable design, the E22SSPIU! serves as a forward-thinking solution to the challenges of sustainable architecture, urging society to reconsider its reliance on conventional resources in favour of more adaptable, eco-friendly alternatives.

JSW Steel Pursues Syndicated Loan of Up to $900 Million

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January 23, 2025

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JSW Steel Pursues Syndicated Loan of Up to $900 Million

India’s leading steel producer, JSW Steel Ltd., is in the process of seeking a syndicated loan of up to $900 million, as reported by individuals familiar with the matter. This move comes as part of an increasing trend of Indian companies tapping into the international debt markets for substantial borrowings.

JSW Steel, which has solidified its position as one of the largest steelmakers in India, is looking to secure the loan to fund its expansion and operational needs. The syndication of the loan reflects the company’s strategy to diversify its funding sources and manage its capital requirements efficiently in a rapidly evolving global economy. This development adds to the growing list of Indian corporations taking on dollar-denominated debt, as the country’s borrowers continue to take advantage of relatively low global interest rates and the increasing demand for Indian corporate bonds in international markets. The loan, if successfully finalised, would help JSW Steel further its growth ambitions, particularly as it looks to expand its manufacturing capacity and enhance its global presence.

JSW Steel’s decision to tap into the syndicated loan market signals confidence in its financial stability and growth trajectory, despite the broader economic challenges facing the global steel sector. The company has been proactive in securing funding for its ambitious plans and expanding its footprint across multiple regions. The move underscores the increasing appetite for high-value financing deals from Indian companies, as they seek to capitalise on favourable lending conditions and strategically position themselves in the global steel market.

VSP-JAC Demands Captive Mines to Prevent Privatisation

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January 23, 2025

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VSP-JAC Demands Captive Mines to Prevent Privatisation

The Visakhapatnam Steel Plant Joint Action Committee (VSP-JAC) has put forth a firm demand for the allocation of captive mines to Rashtriya Ispat Nigam Limited (RINL), the state-owned entity that operates the Visakhapatnam Steel Plant. The committee’s leaders have expressed that securing these mines would be a pivotal step in preventing the privatisation of the plant.

At a recent meeting held at the Visakhapatnam Public Library on Wednesday, VSP-JAC leaders emphasised that the allocation of captive mines would provide a significant boost to the plant’s operational capacity, ensuring its long-term sustainability and making privatisation unnecessary. According to the committee, the move would also contribute to safeguarding thousands of jobs and retaining public ownership of one of the region’s most important industrial assets. VSP-JAC convenor and former MLA Lake Raja Rao hailed the ₹11,440 crore revival package announced by the Centre as a victory for the people of Andhra Pradesh, stating that it would support the plant’s modernisation and growth. Rao added that the central government’s decision was a recognition of the plant’s importance to the state’s economy and employment.

Additionally, Bahujan Samaj Party (BSP) Visakhapatnam district president P. Sivaprasad attended the meeting, lending his support to the cause. The demand for captive mines forms part of a broader effort to protect the Visakhapatnam Steel Plant from privatisation. The VSP-JAC has consistently advocated for the strengthening of public sector enterprises and has warned that privatisation could lead to a loss of local control over critical resources, affecting the livelihoods of the workforce and the economy of Andhra Pradesh. As the debate over the future of the Visakhapatnam Steel Plant intensifies, the demand for captive mines represents a key moment in the ongoing struggle to preserve the plant’s public ownership and ensure its continued contribution to the region’s industrial landscape.

AISI Outlines Key Steel Industry Priorities for 2025

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January 23, 2025

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AISI Outlines Key Steel Industry Priorities for 2025

The American Iron and Steel Institute (AISI) has reached out to top policymakers in the Trump administration and prominent members of Congress, presenting a strategic roadmap for the steel industry in 2025. In a statement this week, Kevin Dempsey, the President and CEO of AISI, highlighted the industry’s key priorities and urged policymakers to consider critical measures related to trade, tax, and regulation.

Dempsey emphasised that 2025 provides a unique opportunity for the government to take a comprehensive approach to the issues currently facing steel manufacturing. As policymakers focus on strengthening the nation’s economic resilience and ensuring national security, AISI has made clear its stance on three core policy areas that could significantly impact the sector’s future. First on the agenda is trade policy. AISI advocates for bolstering existing trade measures to combat unfair foreign trade practices that harm American steel producers. This call for strengthened protections comes amidst concerns over the influx of cheaper, substandard imports that can undermine domestic manufacturing and threaten jobs within the sector.

Second, AISI calls for the implementation of pragmatic regulations that would foster innovation within the industry. According to Dempsey, common-sense regulatory frameworks are vital for enabling steelmakers to adopt cutting-edge technologies and processes that would improve both efficiency and environmental performance. Finally, the institute has put forward recommendations for tax reforms that incentivise ongoing and new investments in the steel sector. These reforms are seen as essential to maintaining the competitiveness of the American steel industry in a rapidly evolving global market.

Dempsey further reinforced the importance of the steel industry to the American economy, stating, “Steel is essential to the everyday lives of all Americans — from the cars and trucks we drive, to the infrastructure we rely on, and the energy sector, from oil and gas to wind, solar, and nuclear power. Every facet of life depends on steel.” He concluded by asserting that the adoption of these policy recommendations would safeguard the continued success of the steel industry and the millions of jobs it supports.

Challenges Ahead for Europe’s Green Steel Shift

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January 23, 2025

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Challenges Ahead for Europe’s Green Steel Shift

Europe’s ambitious transition towards greener steelmaking technologies has encountered a significant setback as some of the continent’s largest steel producers scale back their decarbonisation efforts. The move towards low-emission technologies, particularly the shift from coal to hydrogen and other sustainable solutions, has been a cornerstone of Europe’s climate policy. However, recent developments suggest that the steel industry’s green transformation might be slowing, partly due to the unanticipated costs associated with green hydrogen production and the underperformance of carbon capture and storage (CCS) technologies.

One of the most notable developments comes from Thyssenkrupp, which announced a significant restructuring of its steel unit, including the layoff of 11,000 jobs. The company had been one of the leading proponents of decarbonising steelmaking with the construction of a Direct Reduced Iron (DRI) plant powered by green hydrogen. However, Thyssenkrupp has recently revised its plans, opting to replace only two of its blast furnaces with DRI plants instead of all four, as initially proposed. Similarly, ArcelorMittal, another major player in the European steel sector, has delayed key investment decisions concerning hydrogen-based DRI plants. Although the company remains committed to various decarbonisation technologies, including CCS, it acknowledges that these solutions are unlikely to have a significant impact until after 2030. This shift in priorities signals a growing concern among steelmakers about the economic viability of certain green technologies.

The debate surrounding CCS is growing more pronounced. While it has been seen as a potential solution for capturing and storing CO2 emissions, CCS has faced significant challenges. The world’s only operational CCS plant for steelmaking, the Al Reyadah project in the UAE, captures just 25 percentof the emissions from the plant. Additionally, the Gorgon project in Australia, which has been operational for several years, has failed to meet its emissions reduction targets, injecting only a fraction of the CO2 it was designed to store. These difficulties have led some industry experts to question the long-term effectiveness of CCS. The technology has been plagued by high costs, low capture rates, and uncertainty surrounding the permanence of underground CO2 storage. By contrast, green hydrogen, although still costly, has the potential to scale more effectively as renewable energy prices continue to fall.

The situation is further complicated by the growing interest in importing green iron from countries with access to cheap, renewable energy. Companies like Vale in Brazil are exploring opportunities to produce low-carbon iron and export it to Europe, where the cost of green hydrogen production remains prohibitively high. While European steelmakers have resisted the idea of importing green iron, citing concerns over job losses and industrial policy, this may become a more attractive option as the cost of domestic green steel production continues to rise. As Europe grapples with the economic and technological challenges of decarbonising its steel industry, the role of green hydrogen and CCS will likely continue to evolve. While green hydrogen presents a more promising long-term solution, the path to widespread adoption will require significant investments in infrastructure, policy support, and technological innovation. In the interim, the possibility of importing green iron from countries with cheaper energy sources may emerge as a viable alternative.

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