Update on India’s States: April 27, 2016


Andhra expands its solar energy projects, Railway Ministry to form joint venture with Maharashtra to manage projects worth $3.4 billion, Gujarat exempts small salt producers from paying industrial value-added tax (VAT), Haryana introduces scheme for acquisition of specialized technology, center approves over $108 million for drought-hit Karnataka, Arunachal Pradesh, and Puducherry.

Center–State relations

The Supreme Court of India stayed a judgment by the Uttarakhand High Court that had ended President’s Rule in Uttarakhand. No new government can be formed until the Supreme Court reviews the decision on April 27. Source: Business Standard

The Nomura brokerage firm reported that it expects 16 states to increase their cumulative borrowing to $52 billion in FY 2016-17, up from $44.3 billion in FY 2015-16. The increase is due to risks related to interest payments on the national power sector bailout scheme, over-budgeting of tax transfers, and election-related spending. Source: Financial Express

The Andhra Pradesh state power distribution companies (discoms) acquired gas-based GVK Jegurupadu Power Plant, a private sector company, for $39 million. This is the first instance of a private gas-power private company being acquired by state-owned discoms. Source: Hindu Business Line

Andhra Pradesh has announced plans to expand its solar energy projects on the Losari Canal. The government has commissioned a 600 kilowatt (KW) solar panel project that will cover the canal with solar panels in addition to the 400 KW that began operation in 2015. Solar panels will also be used to cover parts of the Polavaram Right main canal. Source: Economic Times

Nothing critical to report this week.

Nothing critical to report this week.


The Gujarat government announced a six percent cost of living adjustment for its more than 400,000 employees and pensioners. The increase will add $125 million to the state’s budget. Source: Desh Gujarat

The Gujarat government has decided to exempt small salt producers, including cooperative groups and producers with plots smaller than 10 acres, from paying the industrial salt VAT. This decision comes after 350 salt manufacturers threatened to cease salt supply for three days if the government did not withdraw the VAT by April 25. Gujarat accounts for 80 percent of India’s salt production. Source: Desh Gujarat, The Indian Express


The Haryana government has announced a new program, the Assistance for Technology Acquisition Scheme, designed to help small businesses to acquire specialized technology. The scheme includes subsidies on technology acquired from national institutes as well as technology collaboration with foreign enterprises. Source: Times of India

Haryana’s finance minister launched five online services for registration of firms and 18 incentive schemes that were introduced in the Enterprise Promotion Policy 2015. Source: Hindustan Times


The Karnataka Biotechnology and Information Technology Services (KBITS) announced the launch of the Karnataka Startup Policy 2015-2020. The state government has promised to match funds raised by the incubator on a 1:1 basis and allowed for reimbursement of 30 percent of costs incurred on international marketing. Source: Deccan Herald

In Detail: Karnataka Startup Policy 2015-2020

The central government approved an assistance package of $108 million for Karnataka, which has been affected by drought and floods. Source: Economic Times

Nothing critical to report this week.


Union Railway Minister Suresh Prabhu announced a joint venture between the center and the Maharashtra government–the Maharashtra Railway Infrastructure Development Company—that will manage nine railway projects worth $3.4 billion. Source: Economic Times

The Maharashtra Water Resources department issued a resolution introducing strict penalties and regulation for industries found polluting water bodies with untreated effluents. Penalties for violators include doubling of fines and disconnection of water supply. Source: Business Standard


Nothing critical to report this week.


The Tamil Nadu government announced a six percent cost of living increase for teachers, local council employees, and pensioners, backdated to January 1. Source: The Hindu

Telangana’s agriculture sector is experiencing negative growth due to a severe drought accompanied by a searing heat wave. Grain production in the most recent harvest was 60 percent of targets, and more than 50 percent of the state’s revenue districts have been declared “drought hit.” Source: Hindustan Times


The Uttar Pradesh government approved facilities and concessions worth $478 million over seven to 10 years for six mega projects. The projects, which include a new university and an expansion of an LG electronics facility, both in Noida, are estimated to bring in $476 million in investment and provide employment to 11,000 people. Source: Indian Express


West Bengal completed the fourth phase of its elections, with 49 seats contested by 345 candidates. 78 percent of the 10.8 million eligible voters participated in the election process. Source: Times of India


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