The strategic importance of the India-Middle East-Europe Economic Corridor

The strategic importance of the India-Middle East-Europe Economic Corridor

The need for an alternate trade route was never as urgent as it is today. Increasing attacks by Yemen-based Houthi militants on the Red Sea has global leaders deliberate on why the India-Middle East-Europe Economic Corridor (IMEC) can be a solution. It is time to seize the moment and establish this supply route.

Speaking on the sidelines of the World Trade Organization meeting in Abu Dhabi in the last week of February, India’s ambassador to the UAE Sunjay Sudhir asserted the importance of India and the UAE joining hands to make the route a reality, given the volatile situation in the Red Sea. Prime Minister Narendra Modi was in UAE last month to sign a framework pact, following which the Union Ministry of Ports, Shipping and Waterways has started talks with Abu Dhabi’s port.

According to news reports, the Houthis are using drones and missiles on commercial ships as retaliation for Israeli attacks on Palestinians in Gaza. As a result, many shipping companies have been forced to suspend their operations in the Red Sea region. They are now taking longer routes to reach their destinations in the Middle East and Europe. Estimates suggest this is one of the world’s busiest cargo transit points, with almost 12% of the international trade passing through.

As far as India is concerned, almost all of its trade with Europe crosses this channel, making the IMEC project very important. According to the Ministry of External Affairs, IMEC will comprise two corridors – the east corridor connecting India to the Gulf and the north corridor connecting the Gulf to Europe. The corridor aims to provide a reliable and cost-effective cross-border ship-to-rail transit network to supplement the existing maritime routes.

Highlighting the importance of the IMEC project during her budget presentation, Finance Minister Nirmala Sitharaman emphasised how it will reform trade and bolster cultural and diplomatic ties between member nations. According to a news report, the corridor aims to connect important Indian ports to major ports in the Middle East. Rail connectivity will extend from Fujairah port (UAE) to Haifa port (Israel) via Saudi Arabia (Ghuwaifat and Haradh) and Jordan; finally, Haifa port will be connected to Greece’s Piraeus port – the key objective being transport connectivity leading to flourishing business.

Most ports along India’s 7,516 km-long coastline are owned by the Union government. Among the private players, the Adani Ports and Special Economic Zone Limited (APSEZ), promoted by the Adani Group, is India’s largest port developer and operator. APSEZ has developed a string of ports across the Indian coastline to promote trade, connecting the country to the complex global logistics supply chain. Presently, APSEZ is operating 13 state-of-the art ports/terminals in 8 maritime states (Gujarat, Goa, Kerala, Andhra Pradesh, Maharashtra, Tamil Nadu, Odisha and Puducherry), accounting for around one-fourth of the country’s total port capacity.

Nearly, 52% of the company’s port capacity is on the west coast and the rest on the east coast. The company aims to evolve as India’s largest integrated transport utility and the world’s largest private port company by 2030. Its international operations include the Haifa Port in Israel (acquired in 2023) and the development of a container terminal in Colombo, Sri Lanka (under construction), for which it secured U.S. aid of $553 million.

Once the IMEC begins operations, it will prove to be a gamechanger because it will reduce the passage time between countries and significantly reduce the cost incurred on transit, enhancing trade relations with European nations.

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Securing data centres in the digital transformation era

As reliance on cloud computing, artificial intelligence (AI) and internet of things (IoT) increases, safeguarding data centres is becoming more and more important. These facilities house very powerful and advanced electrical systems and hence, can pose safety hazards. The scale of data centres is so huge that it can amplify these hazards, putting the building and the staff at risk. Therefore, it is essential to ensure the safety of staff and give high priority to the management of equipment.

AdaniConneX, a 50:50 joint venture between EdgeConneX and the Adani Group, is committed to safety that transcends conventional norms. AdaniConneX data centres integrate global safety standards with cutting-edge technology, placing the well-being of workers at the forefront. They make substantial investments in people, processes, and technology, with a singular focus on creating state-of-the-art data centre infrastructure that inherently prioritize safety.

To increase awareness of cutting-edge technologies like AI and virtual reality (VR) and their use at construction sites, AdaniConneX launched a campaign recently to showcase the benefits of integrating these technologies into safety practices and to highlight their commitment to employee well-being. Safety is a habit that reflects core values of care and commitment. Embodying care, commitment, and a people-first culture through global safety standards and tech interventions, the goal is zero harm and zero leaks.

To achieve this goal, AdaniConnex has in place an AI-based safety analytics tool to monitor construction sites 24×7 through a network of cameras, identifying safety non-compliance across functional zones and activating real-time response. In cases of non-compliance, it triggers an automated, customized five-level escalation system on a centralized dashboard that is swiftly resolved by zonal heads, ensuring adherence to safety guidelines.

To increase safety at sites, a training programme on virtual reality has been designed to make workers aware about high-risk activities and to ensure preparedness at sites. Workers undergo immersive training on high-risk activities like working at heights, lockout tagout, material handling, hot work, excavation safety, and more. Interactive quizzes consolidate their learning and equip them for unforeseen challenges with the aim of redefining conventional training methods.

Then, there is seamless integration of daily activity briefings (DABs) and e-permits to enhance operational efficiency, contributing to a safer working environment. Conducting daily activity briefings using a cross-functional planning tool becomes easy, facilitating on-site preparedness a day in advance, particularly in the case of high-risk tasks at construction sites. The tool provides a visual layout of work areas, identifies exclusion zones, enables project preparedness, and ensures proactive implementation of safety measures. Simultaneously, the e-permit system digitizes approval processes while aligning all stakeholders, thereby reducing time, ensuring traceability, and improving accountability.

Data centres have evolved over the years. From small rooms housing a few servers that mainly stored critical information, these are now purpose-built mammoth facilities that consume huge amounts of energy. The size of a data centre is being scaled from 5 MW-10 MW to 100s of MW, indicating a paradigm shift in their infrastructure design. There is a need to build data centres that can handle a wide range of power density due to the increasing use of AI technologies. There is high impact of high-density racks on the data centre design and technologies. The scale of operations is so massive that the risks can be best addressed by adopting safety, both in design and during operations.

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Recharging water, rejuvenating life in Kutch 

Water is essential to life. It is important to ensure adequate supply of good quality water, particularly for those living in arid regions where it is scarce. Since such regions are prone to drought, dependence on groundwater increases for food security and meeting drinking requirements. However, over exploitation of groundwater, zero recharge or harvesting of rainwater and lack of awareness on conservation methods lead to depletion of water. This results in sub-optimal use of agricultural land that leads to deterioration of land quality.

Due to the lack of irrigation facilities and with a drastic drop in water levels in non-monsoon months, farmers are unable to cultivate a second crop. This results in loss of work for labourers, forcing many to migrate in search of work. Also, unproductive land and a scarcity of potable water leads to water-borne diseases. Tackling these is a challenge in arid regions.

Continuous efforts are being made by the government, non-profit organizations and individuals to conserve and recharge water. A steady depletion of groundwater and frequent droughts in Kutch, Gujarat, made it imperative for Adani Foundation to take up work systematically for water conservation in the region, particularly in Mundra. Due to arid climatic conditions in the region, it is essential to plan for water security for drinking and livelihood purposes. The Foundation prepared a plan considering the weather conditions, rainfall, geohydrological conditions and water demand with a focus on creating a sustainable agri-based community.

Under its Swajal Project, the Foundation aims to address the alarming depletion of groundwater levels and reduction in water sources in various parts of Kutch district. By devising eco-friendly and cost-efficient methods of rejuvenation, the project works to revive existing water resources, plans sustainable infrastructure for protection of natural waterbodies and improves ecological conditions in the area.

 

The Foundation involved farmers, community members, gram panchayats and government departments throughout the various phases of the project. A thorough study of the topography and watershed delineation and primary water-related data was gathered through experts with involvement of the government to identify waterbodies and the proposed project sites. A Participatory Rural Appraisal approach, backed by triangulated baseline assessment data, was used to implement local solutions for resolving issues. Local youth were trained as ‘Bhujal Jankars’ to collect data, and for site monitoring and management activities.

The Foundation engaged with beneficiaries and government bodies to develop and implement techniques for collection and storage of rainwater. They reached out to communities through the Pani Samiti, gram panchayat or village development committee, followed by focus group discussions and ‘faliya’ (hamlet) meetings with women and street plays with school kids. This created awareness of improved access to clean and safe water and reducing pollution and effects of climatic change.

The efforts paid off. There has been an increase in water storage in stream for irrigation, boosting livelihoods post-stream rejuvenation that encouraged sustainable agriculture. Promotion of micro irrigation systems, like drip irrigation, in the region has impacted the overall wellbeing of the farming population. Through rooftop rainwater harvesting and borewell recharge, water sources are created for use throughout the year. Villagers no longer travel long distances to fetch water. Potable water is now available at their doorstep. The availability of water has also ensured safety, security and overall well-being of women and children in the area.

The initiatives and efforts made by the Foundation continue to provide sustainable solutions for the community for their improved farming and ease of living.

Green Future

Towards a clean, green future

Shimmering under the desert sun, it first gives the impression of a lake. A closer look reveals endless rows of solar panels angled towards the sun on a vast stretch of land. Soaking in rays all day long, these solar panels convert sunlight into electricity that flows into the grids of discoms that light up millions of homes and businesses.

About a decade ago, power generated from solar panels on such a large scale seemed a remote possibility. Today, we can do it due to the fast developments in solar power technology. India ranks fourth globally in renewable energy installed capacity, wind power capacity and solar power capacity, as per energy policy think tank REN21’s Renewables 2022 Global Status Report. At COP26, the country set an enhanced target of 500 GW of non-fossil fuel-based energy by 2030. India must incorporate large volumes of renewable energy to fulfil its growing requirements if it is to achieve carbon neutrality by 2070.

The good news is that both the government and the private sector are working towards achieving the targets. If the government is focusing on policies like the National Solar Mission, the private sector is developing infrastructure and driving innovation to help India become a leading global player in the renewables sector.

Of the many projects that are underway, the one being developed in the Kutch region of Gujarat is an engineering marvel, which can be seen even from space. The government is developing the world’s largest 30 GW hybrid renewables park at Khavda in Kutch across over 750 square kilometres. Adani Green Energy Limited (AGEL), a key participant among the six developers allocated the project by the government, plans to develop around 17 GW to provide reliable, accessible and affordable clean energy.

Once completed and commissioned, this renewable park, which covers vast swathes of barren wasteland, will produce 52,000 million units of electricity annually. The energy output of the park can power over 10 million homes in states like Andhra Pradesh, Gujarat, Chhattisgarh, Maharashtra, Tamil Nadu, Delhi, Tripura, Jammu & Kashmir, Odisha, Bihar, and West Bengal.

Wind and solar energy have variable supply, posing a challenge to largescale adoption of renewables. Hybridisation of wind and solar reduces this variability due to the complementary nature of their generation profile – solar generation is higher during the day while wind generation can be higher in the night. Hybrid projects have higher capacity utilization and enjoy the benefit of a reduction in costs associated with sharing transmission lines. 

AGEL is one of the largest renewable companies in India, with a current project portfolio of 20,434 MW. Green energy, which is derived from natural sources like wind and sunlight, is abundant in nature and does not release greenhouse gases. AGEL is tapping into this source of energy abundantly available in Jaisalmer (Rajasthan), Kutch (Gujarat) and Kamuthi (Tamil Nadu), among others.

Green energy projects will not only enhance economic value through lower costs for consumers but will also catalyse rural employment. In line with the ambitious national vision of commissioning 500 GW by 2030, Adani Green is already the largest solar developer in the world; it is on its way to becoming the largest renewable company in India and among the most formidable renewable energy players in the world. AGEL perceives the future as an opportunity to strengthen its sustainable enterprise and enhance stakeholder value.

Pool Game

The Number Game

What does it mean to be the No. 1 on the world’s rich list? It’s no ordinary feat. The list mentions extraordinary people, who have amassed wealth because of their business acumen and farsightedness. They scale the heights of success riding on their incredible entrepreneurial skills.     

Forbes, Bloomberg and Hurun publish their lists every year. It’s interesting to see the power play as the position of the richest keeps fluctuating on the scale. So, if Elon Musk was ranked No. 1 last year, Bernard Arnault surpassed him to take the top position this year.

According to Forbes, “nearly half the list is poorer than a year ago, including Elon Musk, who falls from No. 1 to No. 2 after his pricey acquisition of Twitter helped sink Tesla shares. Bernard Arnault, head of luxury goods giant LVMH, takes his place as the world’s richest person, marking the first time a citizen of France leads the ranking. The United States still boasts the most billionaires, with 735 list members worth a collective $4.5 trillion. China (including Hong Kong and Macau) remains second, with 562 billionaires worth $2 trillion, followed by India, with 169 billionaires worth $675 billion.”

There’s a scale to weigh everything, even wealth. This scale measures the wealthy and their wealth on different parameters and factors. It’s kind of a ranking system that uses different methodologies to determine a person’s position on the rich scale and their net value. “Net worth is the most common measure of wealth, determined by taking the total market value of all physical and intangible assets owned, then subtracting all debts,” explains Investopedia. Forbes uses stock prices and exchange rates to calculate net worths.

In Asia, Gautam Adani, Chairman of Adani Group, is the second richest Asian, as per the Forbes rich list. He was ranked the world’s second richest at the start of 2023 but failed to figure in the top 20 after the assault by US short seller Hindenburg Research on the Group in January 2023. The conglomerate lost as much as $150 billion in market value in the aftermath. But Adani didn’t buckle down and instead took measures to consolidate his wealth. The billionaire who heads a $32 billion enterprise spanning ports, airports, energy, and green initiatives has had a stupendous comeback after a year.   

Every new year brings with it a lot of hope, aspirations, and resolutions to do better than the previous year and achieve more. A year after the Hindenburg attack, the conglomerate has emerged not only stronger but more confident. “I am under no illusion that this is the end of such attacks. I believe we have emerged stronger from this experience and more unwavering in our resolve to continue our humble contribution to the India growth story,” Mr Adani said in his opinion piece written for The Times of India.

New policies are shaping India. Aligning with India’s vision, Adani Group is scripting its success story. Today’s economic climate is such that businesses are ready to take risks to stay ahead of the curve – be it adopting technological interventions or changing goals as per change in policies. They are eager to adapt to changes like never before.