Update on India’s States: August 23, 2016


Six states have ratified the GST amendment; hundreds of thousands of state government employees are getting large raises; Gujarat’s troubles continue as Dalits push for land; Lockheed will open a manufacturing facility in Andhra Pradesh and China Railway Rolling Stock will open one in Haryana; Madhya Pradesh guarantees payments to massive solar park; Maharashtra is pruning its statute books; West Bengal drops out of the Smart Cities initiative; and more.

Center-State relations

GST Ratification Tracker: Six states of the necessary 15 have ratified the GST amendment: Assam (August 12), Bihar (August 16), Jharkhand (August 18), Himachal Pradesh (August 22), Chhattisgarh, and Gujarat (both August 23). Several additional states are preparing special legislative assembly sessions to ratify the amendment. Source: Livemint

The central government may allow private retail outlets to sell subsidized pulses after the states did not avail themselves of the buffer stocks Delhi has made available. The center has allocated 29,000 tons of pulses this year for direct distribution to consumers, but only three of 11 states — Andhra Pradesh, Tamil Nadu and Telangana — have taken advantage of the program. Source: Business Standard

The center will give $294 million in special assistance to Andhra Pradesh during the current fiscal year as compensation for the financial impact of the bifurcation of the State of Andhra Pradesh. Source: Hindu Business Line

Wem Technologies and Lockheed Martin are partnering to open a facility to manufacture the Light Combat Aircraft in Andhra Pradesh. Source: Economic Times

Tata Power Solar has successfully commissioned a 100 megawatt (MW) solar plant in Anantapur. The project used domestically produced solar cells and modules and is expected to generate nearly 160 million units of energy per year. Source: Economic Times

Chief Minister N. Chandrababu Naidu laid the foundation stone for the first medical devices manufacturing cluster in the country. The state government has allocated 270 acres of land for the park and formed a special purpose vehicle to run it. Source: Hindu Business Line

Nothing critical to report this week.

The Delhi government has implemented the Seventh Pay Commission recommendations, granting a 250 percent raise in basic salaries and pensions with effect from January 1, 2016. More than 100,000 city employees will receive increased salaries starting next month, with arrears paid in a single block. Source: Economic Times

Gujarat has allocated 125 acres of land for a pharmaceutical park at Sanand, about 19 miles  from Ahmedabad. Source: Business Standard

The Gujarat government implemented the recommendations of Seventh Pay Commission, raising the salaries of over 850,000 state employees and pensioners. The move will cost the state $1.3 billion annually. Source: Business Standard

Dalit activists gave the state government 30 days to meet their demands, including giving each Dalit family five acres of land, before they begin blocking rail routes. Source: Livemint

Haryana will offer farmers a 90 percent subsidy to encourage them to purchase solar water pumps. The state hopes to set up 3,050 such pump sets. Source: Economic Times

Beijing-based China Railway Rolling Stock Corporation (CRRC), China’s biggest high-speed train and railway equipment maker, began operations on its first joint venture in India. The joint venture with Indian Railways, named CRRC Pioneer (India) Electric Co. Ltd., will make and repair locomotive engines from a factory in Haryana. Source: Hindustan Times

The Haryana government announced that, within social groups that qualify for reservations, children whose parents earn less than $4,500 a year would receive preference for quotas in services and school admissions. Source: The Hindu

Karnataka attracted $8 billion in investments in the IT sector during the last fiscal year, nearly 25 percent of total investments for all of India. Investment in the sector has grown at an average rate of over 14 percent in the past 10 years. Source: Economic Times

The Karnataka Startup Cell received 600 applications for registration in a week after introducing its start-up booster kist, compared to just 40 registrations in the previous two-and-a-half years. Source: Yourstory

Rio Tinto will close its Bunder diamond mine in Madhya Pradesh as part of a cost-cutting effort. The Madhya Pradesh government had fought to save the mine, urging Rio Tinto to wait until the Ken-Betwa river linking project was completed. Source: Financial Express

Madhya Pradesh will soon implement the recommendations of the Seventh Pay Commission, giving large raises to public-sector employees. Source: Business Standard

The Madhya Pradesh government will extend a state guarantee to the contractor of its flagship solar plant at Rewa. The guarantee would insure Rewa Ultra Mega Solar, a joint venture of state and central government entities, against any default in payment. Described as the world’s largest contiguous solar park, the project entails an investment of $1.12 billion. Source: Business Standard

The Maharashtra Legislative Assembly repealed 64 acts, some of which date back to 1876, in an attempt to begin prune outdated or irrelevant legislation. Source: Economic Times

In order to raise $30 billion to aid completion of infrastructure projects in the state, the state government is exploring plans to sell land owned by various government departments. Source: Business Standard

The Maharashtra government has offered a letter of intent to Larsen and Toubro to lead work on developing Nagpur as a smart city. Source: Indian Express

The state government has begun allotting vacant land to landless residents for construction of houses under the Pradhan Mantri Awaz Yojana, a central scheme to provide housing for all. Source: Times of India

Wind energy production in Tamil Nadu rose 150 percent this year over last year. Wind energy accounted for 33 percent of the total electricity consumption in the State. Source: The Hindu

Tamil Nadu has offered KIA Motors, a division of Hyundai, a 400-acre plot of land to encourage it to build a new factory in the state. Source: Business Standard

The Telangana government has introduced a Digital Driving License and Registration Certificate, which can be downloaded by motorists to a mobile app. The digital license is legally valid for all purposes. Source: The Hindu

Oracle Academy signed an agreement with the Telangana Academy for Skill and Knowledge to provide software, curriculum support, hosted technology, educator training, support and certification resources to students and faculty. Source: Silicon India

The Uttar Pradesh government approved a metro rail project for Allahabad. Work is already underway on the Lucknow Metro Rail and the Detailed Project Reports for Varanasi and Kanpur metros have been approved. Source: NDTV

Uttar Pradesh will no longer seek to develop an international airport in Agra and has instead ask the central government to site the project in Saifai, the home village of Chief Minister Akhilesh Yadav. Source: Indian Express
The West Bengal government will not participate in the center’s Smart City initiative, but will instead develop selected cities along the lines of its own ‘Green City Project.’ New Town-Rajarhat, a Kolkata suburb that was selected for the Smart City program, will now be developed as India’s first ’Green City.’ Source: Indian Express

State-run Bharat Heavy Electricals has secured a $26 million order from West Bengal State Electricity Distribution Corporation to build and commission three solar power plants with a total capacity of 30 MW. Source: Economic Times


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