Russia has invaded Ukraine and set in motion a series of actions that will have repercussions. The oil price is set to boil having breached $105 per barrel. The commodity cycle is also on a boil again. India’s position to stay neutral is on trial and the US favours that the country has managed to secure, are set to get tested. However, inflation is the real danger for India’s economy as this war pans out. In all likelihood, a resolution should emerge sooner than later. Meanwhile, the results of the Uttar Pradesh elections will indicate how much of the electorate favours economic development and how much it favours the caste issue. The state’s report card on various parameters of development paints a sorry picture, unlike Bihar which drove the state to development with its road networks during Nitish Kumar’s tenure. The PM's National Hydrogen Mission of producing 5 million tonne of ‘green hydrogen’ by 2030 and the related development of renewable energy capacity saw the green hydrogen and ammonia policy announcement on February 17, 2022. Hydrogen and ammonia are considered future fuels and ideal substances to replace fossil fuels. As the production of these fuels is highly energy-consuming, using power from renewable energy to produce green hydrogen and green ammonia is one of the major steps towards COP26 commitments. JCB is investing Rs.10 billion to scale up production of a new range of products at its latest factory in Vadodara, Gujarat - where the first phase commences in April - boosting the company’s strategy to export the new range of Make-in-India products. According to Deepak Shetty, CEO, exports grew 300 per cent last year and the company is aiming for a similar export performance this year with the Vadodara facility becoming operational. JCB has validated that India can be used as a sourcing hub for manufacturing products, even for markets such as the US and UK. Demand for housing in India continued to remain “extremely robust,” in the words of Deepak Parekh, Chairman, HDFC, who emphasised that “the greatest mark of confidence had been the strong pipeline of new launches, surpassing prepandemic levels.” The demand for housing continues to be from first-time homeowners as well as those moving into larger homes or houses in other locations. However, building material and construction costs are taking a toll. The rise in costs of raw materials is a concern – petcoke price has increased by over 50 per cent while diesel price is up 14.4 per cent year on year. Cement companies have already begun passing on the cost to retain profitability. The all-India average cement price increased by 5 per cent year on year to Rs 365 per 50 kg bag in January and seems to be headed towards Rs 400 per 50 kg bag this year. Labour and other construction costs have also gone up and, therefore, real-estate prices are likely to firm up. During 2021, the BMC (Mumbai Municipal Corporation) approved 2,473 building projects earning it a record `132 billion as premium fees from developers towards a built-up area of 150 million sq ft, which is equal to roughly 15 Nariman Point-sized realestate spaces on account of the 50 per cent discount in development premium offered by the BMC to shore up its revenues. In comparison, about 1,995 projects were approved in the pre-pandemic year of 2019. These projects had a built-up area of around 90 million sq ft. This is likely to see a spurt in real-estate supply in Mumbai. We are likely to witness a sharp rise in real-estate prices in lesser served areas versus more popular areas, which may face a glut. Several answers will be apparent by the end of the month. It is time to recall Shakespeare’s words from his play Julius Caesar when a soothsayer warns Caesar, “Beware the ides of March.” Do register for the CONSTRUCTION WORLD Design Build Conclave & Awards in Delhi on March 11: Click HERE Founder & Editor-in-Chief Pratap Padode