Update on India’s States: December 6, 2017

Rajasthan and USAID launch the world’s first health impact bond; Madhya Pradesh proposes a massive budget supplement to address rural distress; Uttar Pradesh totally revamps its power tariff structure; Karnataka begins to sign wind power contracts; and more.

Center-state relations

The Asian Development Bank (ADB) said it will provide a $500 million loan to improve rural road connectivity in Assam, Madhya Pradesh, Chhattisgarh, Odisha, and West Bengal. The ‘Second Rural Connectivity Investment Programme’ will construct and upgrade over 7,500 miles of rural roads. Source: LiveMint In Detail: Press Release

The state assembly passed The Andhra Pradesh Money Lenders Bill 2017, which consolidates the laws relating to money lending and regulates and streamlines the business. The bill makes it mandatory for moneylenders to obtain a license and pay a security deposit ranging from $77 and $3875 to the government. Source: The Hindu

Nothing critical to report this week.

The Delhi cabinet approved the release more than $62 million in additional funding to the city’s municipal corporations. The funds must be used for payment of salaries and arrears to sanitation workers. Source: The Hindu

Nothing critical to report this week.

Nothing critical to report this week.

The Karnataka Electricity Regulatory Commission (KERC) has endorsed a wind energy power purchase agreement (PPA) at the original tariff of 7 cents per unit, ending a month-long dispute with the state government. The move kindled hopes that the state would begin executing older PPAs despite the steep fall in tariffs discovered in recent auctions. KERC’s chairman, however, said that the commission would evaluate PPAs on a case-by-case basis. Source: Economic Times

Finance Minister Jayant Malaiya tabled a $2.4 billion supplementary budget proposal in the legislative assembly. Meant to provide financial support to village and rural development schemes, the budget includes $620 million for the Bhawantar Bhugtan Yojana for distressed farmers. Source: Times of India

The Madhya Pradesh cabinet approved a proposed amendment to the state criminal code requiring the death penalty for those involved in the rape or gang rape of girls below the age of 12. Source: Times Now

 The state government issued an ordinance reducing the powers of tribal village assemblies to refuse to sell land to the state for infrastructure projects. The government has been struggling with local opposition to ceding land for the Mumbai-Nagpur expressway. Source: Hindustan Times

The United States Agency for International Development (USAID) launched the world’s first health-impact bond, the Utkrisht Impact Bond, to reduce maternal and neo-natal deaths in Rajasthan. The $2.25 million bond is a public-private partnership, with private funders paying to improve private health facilities. USAID will pay out on the bonds only if the providers achieve certain targets. Source: The Hindu In Detail: Press Release

Siemens Gamesa Renewable Energy won an order to supply 200 megawatts (MW) of low-wind turbines to the Poovani wind park in Tamil Nadu. Orange Renewable Power will develop the project. Source: Live Mint

The Telangana Government announced it will create an exclusive innovation hub for women, modelled on T-Hub and called WE-Hub. The project will be backed with a $2.3 million  investment fund. Source: Hindu Business Line

Chief Minister Yogi Adityanath cleared his first major political test in office as his Bharatiya Janata Party won 14 out of 16 mayoral posts in recent local elections. The BJP also won a plurality of lower-level posts, including 596 out of 1,300 seats on municipal corporation wards, 70 out of 198 city council chairman posts and 100 out of 438 town council chairperson slots. Source: The Hindu

The Uttar Pradesh Electricity Regulatory Commission (UPERC) hiked the power tariff for metered rural consumers by 4 cents per unit for the first 100 units and 7 cents per unit thereafter.  Unmetered rural customers will be required to install a meter or pay $10 per month, up from $2.80. Below poverty line consumers, who used to receive 150 subsidized units per month, will now receive 100 units. Source: News 18 In detail: UPERC Order

The state government approved the merger of Durgapur Projects Ltd (DPL), a power utility, with the principal state-run utilities in order to save the jobs of the company’s 3,000 employees. DPL has a negative net worth of $155 million, with losses of around $30 million every year for the past decade. Source: Telegraph India

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