Update on India’s States: August 31, 2016

GST Amendment is one state away from ratification (but West Bengal won’t cast the deciding vote); Maharashtra joins the center’s regional connectivity scheme; Maharashtra withdraws controversial internal security legislation; Madhya Pradesh chief minister Chouhan visits the United States; Rajasthan is disinvesting from state-owned power plants; and more.

Center–State relations

Goods and Services Tax (GST) Ratification Tracker: 14 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), Madhya Pradesh and Delhi (August 24), Nagaland (August 26), Maharashtra (August 29), Sikkim, Mizoram, Telangana and Haryana (all on August 30), and Goa (August 31).

The union cabinet approved nine rail projects estimated to cost $3.7 billion. These projects include setting up approximately 1,204 miles of railway tracks spread across Assam, West Bengal, Jharkhand, Chhattisgarh, Maharashtra, Madhya Pradesh, Telangana, Andhra Pradesh and Odisha. Source: Livemint

Chief Minister N. Chandrababu Naidu and railway minister Suresh Prabhu inaugurated a new $29 million passenger train between Nandyala and Kadapa and also commissioned a new railway line between Nandyala and Yerranguntla.  Source: Business Standard

The central government is in talks with the Andhra Pradesh government to identify land plots for India’s first textile megacity. Source: Business Standard

Indian infrastructure development company IL&FS will sell its entire stake in the Andhra Pradesh Expressway to Singapore-based Cube Highways and Infrastructure Pte Ltd. for a price of $20.8 million. Source: NDTV

Nothing critical to report this week.

Nothing critical to report this week.

Gujarat chief minister Vijaybhai Rupani met with a Japanese delegation from Hyogo prefecture to discuss cooperation in education and youth skill development. Source: Times of India

Nothing critical to report this week.

The Karnataka government has established a new non-profit company “Invest Karnataka Forum” primarily dedicated to attract investment to the state. The company will have a budgetary allocation of $1.5 million. Source: Livemint

The state cabinet has approved the setting up of India’s first integrated machine tool industry park in Tumkur district of Karnataka. The project will be spread across 500 acres and is estimated to cost $67 million, of which $19 million will be provided by the center. Source: Deccan Herald

Karnataka chief minister Siddaramaiah has announced that the state will not be able to share water from the Kaveri river with farmers in Tamil Nadu due to insufficient rains. Source: Hindu Business Line

Madhya Pradesh chief minister Shivraj Singh Chouhan is on a five-day tour in the United States and is expected to meet with representatives of Pfizer, Mastercard, Kaul Group, and other potential investors. Source: Indian Express

Maharashtra became the first state in the country to sign up for the center’s regional connectivity scheme under a memorandum of understanding (MoU) with the civil aviation ministry and the airport authority of India. Under this initiative the state will revive unused airstrips, connect tier 2 and 3 towns with new flights, provide free security and fire brigade services, and levy one percent value added tax on jet fuel sold at these regional airports. Source: Business Standard

The Maharashrta government announced a 50-50 public-private partnership with the private sector to develop 1,000 tribal villages in the state. Source: Indian Express

The state government withdrew the draft internal security legislation a week after first proposing it when the law came under fire from coalition partner Shiv Sena. The draft would require all public spaces to have CCTV cameras and all gatherings of more than 100 people to have a permit from the police. Source: The Hindu

The chief ministers of Maharashtra and Telangana signed three irrigation and water-sharing agreements, which included an agreement to construct three barrages with a total storage capacity of 19 thousand million cubic feet. Source: Hindu Business Line

The Rajasthan state cabinet cleared a proposal to begin disinvestment of four units of thermal power plants through tariff-based bidding with the goal of reducing losses incurred by the power companies. Source: The Hindu

Rajasthan chief minister Vasundhara Raje inaugurated the fourth unit of Chhabra Thermal Power Station in Motipura area. Source: Economic Times

The state government has signed an MoU with Rise India, a strategic investment firm, to set up driving training centers that will also provide skills training in agriculture, horticulture and animal husbandry. Source: Money Control

The central government has decided to build its first bifunctional airport in Rajasthan, the airstrip of which will function both as a runway and highway based on aircraft movement. Source: Business Insider

Tamil Nadu has the fastest-growing solar power capacity in the country, adding over 1200 megawatts (MW) in the last year. Tamil Nadu now has the highest commissioned capacity in both wind and solar power. Source: Hindu Business Line

In order to create a $90 million private equity fund for start-ups in the state, the Telangana government is collaborating with investment funds for a commitment of $9 million. The fund is to be managed by the Small Industries Development Bank of India, with a first phase of $15 million. Source: Hindu Business Line

The central government is undertaking a field survey across 1,450 villages that were claimed to be electrified by Uttar Pradesh to gauge whether funds for rural electrification have been used appropriately. Depending on the findings by the rural electrification engineers the center will ask the comptroller and auditor general to conduct an audit of the funds. Source: Economic Times

West Bengal de-listed discussion of the Goods and Services Tax Amendment from the order of business for a special session on August 29. Ratification of the amendment has now been postponed indefinitely. Source: Economic Times

West Bengal is planning a $1.5 billion port project at Tajpur in east Midnapore district to boost industry, trade, and tourism and increase employment. Source: Financial Express

President Pranab Mukherjee inaugurated a mega food park at Jangipur in Murshidabad, which will provide critical food processing infrastructure to the farmers in this underdeveloped area of the state. Source: Business Standard

The West Bengal government has increased the average power tariff for consumers using over 300 units of power by $0.015. However, consumers from the middle class, agricultural sector and below poverty line users will be exempt. Source: Business Standard

West Bengal chief minister Mamata Banerjee said her government will oppose the September 2 general strike called by several central trade unions as it would hurt the economy of the state.  Source: Economic Times


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