Update on India’s States: April 13, 2016

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Rajasthan passes bill to guarantee clear title for land and eases land acquisition rules for industrial development; Maharashtra allows sale of public land; Oracle invests $400 million in Bangalore; Andhra signs an agreement with China’s Sichuan province for closer economic ties

Center–State relations

The cabinet set the 2015-2020 fiscal deficit target for states at three percent of gross state domestic product, as recommended by the Fourteenth Finance Commission. States will be allowed to exceed the target by up to .5 percent of state domestic product. Source: Business Standard

The Reserve Bank of India (RBI) announced that implementing the recommendations of the 14th Finance Commission had reduced the transfer of central funds to states by 0.3 percent of GDP in the last financial year. Transfers decreased despite the fact that tax devolution to states increased from 32 to 42 percent. Source: Business Standard

Andhra Pradesh and China’s Sichuan province signed a memorandum of understanding to promote closer economic ties, focused on information technology and pharmaceuticals. Source: The Hindu

Toshiba announced it will open a new production facility in Hyderabad. The facility will manufacture electrical equipment for railway and power conversion systems and train control systems. Source: Economic Times

Nothing critical to report this week.

 

In response to rising consumer prices, the Delhi government has raised the minimum wage for unskilled, semi-skilled and skilled workers. Workers will now take home roughly six or seven dollars more per month, depending on their skill level. Source: Economic Times

In Detail: Government Order

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Nothing critical to report this week.

27139560-09f8-4877-8e8c-d65010c2877bNothing critical to report this week.

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Oracle announced an investment of $400 million in Bangalore, including setting up its first incubation center there.  Source: Financial Express

 

Nothing critical to report this week.

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The state legislative assembly passed a bill permitting the sale of certain public lands. The bill will allow residents who currently lease or occupy public land to become the owner outright. Land allotted for hospitals, recreation, educational complexes will be exempt.  Source: Indian Express

The Maharashtra Economic Survey 2015-16 predicted that the state’s production of cereals would fall by 41 percent and of pulses by 11 percent due to severe drought in more than 3 quarters of the state. Source: Firstpost

In Detail: Maharashtra Economic Survey 2015-16

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The Rajasthan government has passed the Rajasthan Urban Land (Certification of Titles) Bill, 2016. This will create a government guarantee of title, reassuring prospective buyers that they will not face legal challenges following a purchase. Source: Livemint

In Detail: Rajasthan Urban Land (Certification of Titles) Bill, 2016

The Rajasthan government has passed two bills designed to make it easier for the government to acquire land for industrial development. The Special Investment Region (SIR) Bill allows the government to exercise eminent domain to acquire land designated as a special investment region. The Land Pooling Schemes Bill supplements the SIR Bill by consolidating small land holdings.

Source: Indian Express

In Detail: Rajasthan Special Investment Region Bill, 2016

In Detail: Rajasthan Land Pooling Schemes Bill, 2016

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Nothing critical to report this week.

The Telangana government announced a new information and communications technology (ICT) policy that it hopes will help make the state a high-tech hub. The state will create a $350 million fund for seed and venture capital and is developing electronics manufacturing clusters as well as space for start-up offices. Source: LiveMint

In Detail: Telangana ICT Policy Framework 2016 and Allied Policies

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The central government has approved in $200 million in drought relief in the hard-hit Bundelkhand region of southern Uttar Pradesh. Residents of the area are experiencing severe water shortages, with some areas lacking water even for drinking. Source: Scroll

IndiaBanners_CogitAsia_states_WestBengal

Nearly 5 of the 7 million eligible voters voted for 31 assembly seats during Phase 1B of West Bengal elections on April 11. Local police received more than 1000 complaints of violence. Source: The Hindu

Upcoming Election Dates:

Kerala – May 16

Tamil Nadu – May 16

Puducherry – May 16

West Bengal – April 17, 21, 25, 30, and May 5

May 19: Results from all 5 state elections announced.

Previous Poll Dates:

West Bengal – April 4, 11

Assam – April 4, 11

Parliament Resumes: April 25

To learn more follow the @IndiaStatesCSIS twitter feed, covering key state-level political and economic developments.

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