Update on India’s States: February 27, 2019

Karnataka allowing landowners to convert their agricultural land for non-agriculture use online; Madhya Pradesh distribution utility blocked from re-opening wind power PPAs; Odisha releases a new Business Process Outsourcing Policy; Tamil Nadu introduces a new tenancy act; Andhra Pradesh keeps electricity tariffs unchanged for the fifth year in a row; Bihar and Rajasthan announce new reservation policies; and more.

Center – State relations

The center released the second edition of its ranking of states based on their start-up initiatives. The ranking exercise aims to evaluate measures taken by states and union territories to establish a robust ecosystem for supporting start-ups during the assessment period from May 1, 2018 to June 30, 2019. Source: Economic Times In detail: Draft ranking framework 2019

The Andhra Pradesh signed an agreement with The Adani Group to build data center parks of up to five gigawatts (GW) in capacity in and around Visakhapatnam over the next 20 years. The Adani Group will invest $9.85 billion over this time, and is expected to create as much as 100,000 jobs in the state. Source: Economic Times

The Andhra Pradesh Electricity Regulatory Commission announced no increases in power tariffs for any category of consumers in Andhra Pradesh for 2019-20, the fifth year in a row it has not raised tariffs. Source: The Hindu In detail: Tariff Order

Vikram Solar announced it has commissioned a 200 megawatt (MW) solar power project for Andhra Pradesh Power Generation Corporation in Anantapuramu district. The plant will power nearly 150,000 homes once connected to the grid. Source: The Hindu Business Line

In detail: Press Release

Bharat Heavy Electricals announced it has commissioned a 250 MW coal-based thermal power plant in Bihar. Source: Economic Times In detail: Press Release

The Bihar assembly passed a bill to reserve 10 percent of government jobs and seats at educational institutions for economically weaker sections of the general category. Source: News 18

Energy Efficiency Services Limited (EESL) launched its super-efficient air conditioning program for residential and institutional consumers south and west Delhi. Under the program, EESL will distribute air conditioners that are 40 percent more efficient but are priced comparably to units currently available in the market. Source: Siasat

 

The Union Cabinet approved the second phase of the Ahmedabad Metro, which will connect Gandhinagar to Motera and will cost $777.3 million. Source: Times of India In detail: Press Release

The Gujarat government presented a Vote-on-Account Budget for 2019-20 with an estimated gross surplus of $1.72 billion without any new tax proposals. Revenue receipts for the year 2019-20 are estimated at $21.79 billion, while revenue expenditure is estimated at $20.4 billion. Source: The Hindu Business Line In detail: Gujarat Budget 2019-20

The Gujarat State Electricity Corporation Limited has issued a tender to set up 175 MW of solar power projects at Dhuvaran and another 100 MW at Raghanesda Ultra Mega Solar Park. Source: Mercom In detail: Tender details

UPC Energy Group, an American company, as well as Adani Green Energy, ReNew Power and Orange Renewables are among the winners in Gujarat’s 500 MW solar auction. The lowest offer for this tender was $0.035 per kilowatt-hour, or unit. Source: Economic Times

Nothing critical to report this week.

Karnataka launched an online portal to allow landowners to more easily convert their agricultural land for non-agriculture use. Under the system, landowners will only need to submit three documents online, as compared to 20-25 documents manually under the old system. Source: Economic Times In detail: Land conversion portal

The Karnataka Electricity Regulatory Commission approved a letter of award to Amar Raja Power Systems Limited to construct 50 MW (10 MW x 2 blocks + 15 MW x 2 blocks) of solar projects at Pavagada Solar Park, located in Tumkur district of Karnataka. Source: Mercom

The Madhya Pradesh government rolled out the ‘Mukhyamantri Yuva Swabhiman Yojana,’ which guarantees 100 days of employment every year to urban youth from economically weaker sections. Source: The Hindu

The Madhya Pradesh government removed a 100-unit cap on electricity consumption for which poor consumers can claim subsidies. The cap was installed after it was found that only 146,000 consumers, or 2.3 percent of the 6.2 million poor power consumers in the state, were claiming 30 percent of the $21.1 million in subsidies offered by government. Source: Times of India

The Madhya Pradesh Electricity Regulatory Commission has turned down a petition by state electricity distribution companies to revise the rates at which they procure wind power, noting that, “the power purchase agreement (PPA) has no renewal/revision/review clause empowering the Commission to revise the tariff.” Source: Financial Express

The Maharashtra State Electricity Distribution Company Limited announced it will sign power purchase agreements for 1,000 MW of solar power after it received bids at $0.0385 and $0.0387 per unit. This purchase will prevent increase in power tariff in the coming years. Source: Times of India

The Maharashtra government created a Transgender Welfare Board to provide formal education, employment opportunities, conduct health programmes, and give legal help to members of the transgender community. Source: NDTV

The Maharashtra cabinet approved a proposal to settle all the taxation-related disputes pending before the Goods and Services Tax came into effect. A new legislation will be introduced to ensure that people who come forward to settle their disputes will receive a waiver in the range of 1 percent to 50 percent of their penalty amount. Source: Money Control

The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has issued a tender to install 50 electric vehicle charging stations in the state. These charging stations will be spread across seven locations. Source: Mercom

The Rajasthan government confirmed it will reserve 10 percent of government jobs for economically weaker sections of the general category. In order to implement this policy, the department of personnel issued a notification amending the Rajasthan Various Service Rules and Rajasthan Public Service Commission (Ministerial and Subordinate Services) rules. Source: Economic Times

The state government announced a 3 percent increase to the dearness allowance (DA) for its employees. With this announcement, the DA of the state government employees rose to 12 percent. Source: Times of India

The Solar Energy Corporation of India’s 750 MW tender for solar photovoltaic projects across Rajasthan has been oversubscribed by 1,620 MW. Bids totaling 2,370 MW were submitted in response to the tendered capacity of 750 MW. Source: Mercom

Tamil Nadu government introduced a new tenancy act, titled the Tamil Nadu Regulations of Rights and Responsibilities of Landlords and Tenants Act 2017, which is aimed at balancing the rights of the tenants and owners. The act is modeled on the center’s Tenancy Act and will  repeal and replace the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960. Source: Times of India In detail: Tamil Nadu Regulations of Rights and Responsibilities of Landlords and Tenants Act 2017

Presenting the state’s 2019-2020 budget, Chief Minister K. Chandrashekar Rao announced new spending in the irrigation and agriculture sector, allocating $3.16 billion and $2.82 billion for the sectors respectively. Source: The Hindu Business Line In detail: Telangana Budget at a glance

The 15th Finance Commission lauded Telangana’s growth rate and development model and called upon the state government to draw up a medium-term fiscal deficit and debt management plan. The chairman of the Commission, N.K. Singh, noted that despite the state’s commendable growth rate, the state needed to pay attention to its fiscal deficit and mounting debt. Source: The Hindu Business Line In detail: Press Release

French aerospace company Safran announced it will invest $40.7 million in Telangana to build a turbine component manufacturing facility for its advanced LEAP commercial jet engines. Source: Business Standard

Nothing critical to report this week.

The center has asked the West Bengal government to return the $27.16 million it had received for the central government’s Ayushman Bharat health insurance program, along with any interest earned, following the state’s withdrawal from the program. Source: Economic Times

Best of the Rest

Arunachal Pradesh

Arunachal Pradesh deputy chief minister Chowna Mein presented the vote-on-account for the year 2019-20 for four months from April 1 to July 31 this year, since Arunachal Pradesh will hold state-level election in May along with the national elections. Source: Financial Express

Chhattisgarh

The Chhattisgarh government has barred the panchayats, or village councils, from controlling the extraction and trading of sand — a right that was bestowed to the village government under the Panchayati Raj Act. Source: Business Standard

The Chhattisgarh cabinet has decided to end implementation of the Chhattisgarh Land Revenue Code which permitted acquisition of tribal land if both parties agreed. Source: Hindustan Times

Jammu and Kashmir

The Jammu and Kashmir administration ruled out any change in its stand on Article 35-A – a law that gives special powers to people of the state – and maintained that only an elected government can argue the matter before the Supreme Court. Source: NDTV

Nagaland

Nagaland chief minister Neiphiu Rio tabled a government resolution in the state assembly to reject the Citizenship Amendment Bill, 2016. Source: Times of India

The Nagaland assembly passed the Nagaland Appropriation (No. 1) Bill, 2019, which authorised the withdrawal of $303.2 million from and out of the Consolidated Fund of the state of Nagaland for the financial year 2018-19. Source: Morung Express

Odisha

The Odisha cabinet approved the ‘Khushi Yojana’ to provide 1.725 million school girls in the state with free sanitary pads, and allocated $65.58 million over 5 years. Source: Orissa Diary

Odisha has announced a new Business Process Outsourcing Policy to attract investors and to create 30,000 jobs in the sector by 2022. The policy promised a guaranteed capital investment subsidy of $1,477 for firms coming within the jurisdiction of Bhubaneswar Municipal Corporation. Source: People matters In detail: Odisha BPO Policy 2019

Punjab

The Punjab State Power Corporation Limited issued guidelines to implement a benefit program that will give 200 free power units per month to those belonging to scheduled castes backward classes, and families below the poverty line families whose annual consumption exceeded 3,000 units. Source: Indian Express In detail: Press Release

To attract specialist doctors to the state, the Punjab government decided to offer an incentive of up to $1,055 in addition their monthly pay check. Currently, gynaecologists and pediatricians qualified under the National Health Mission are eligible to receive this incentive. Source: The Tribune

Sikkim

The Sikkim assembly passed an interim budget of $5 billion for six months of the financial year 2019-20, since Sikkim will hold state-level election in May along with the national elections. Source: Business Standard

Uttarakhand

The Uttarakhand assembly passed a bill to amend the state excise law, increasing punishments for the manufacture, sale, and supply of illicit liquor stricter to up to 10 years in prison. Source: Times of India

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