Update on India’s States: February 7, 2018

World Bank and Asian Development Bank sign loan agreements for state-level projects for road building, drip irrigation, solar parks and promotion of India’s rural economy; Madhya Pradesh announces new excise policy; Bihar closes three hydro power projects; and more.

Center – State relations

The Asian Development Bank (ADB) will provide a $250 million loan to the government of India to finance the construction of 3,886 miles of all-weather rural roads in Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal. Source: Live Mint In Detail: Press Release

The Airports Authority of India (AAI) has allocated around $528 million for upgrading airports in the northeast region. Source: Business World

The Rural Electrification Corporation launched a “REC Innovation Platform,” through which three projects by engineering students from 30 government institutions in Telangana and Andhra Pradesh will be selected for advanced mentoring at T-Hub in Telangana. Source: Telangana Today

Godavari Gas Private Limited (GGPL), a joint venture of the Andhra Pradesh Gas Distribution Corporation and the Gas Authority of India Limited, is set to supply piped natural gas to the east and west Godavari districts. Source: The Hindu

The state cabinet of Bihar has approved the closure of three hydroelectric power projects and decided to transfer eight of its hydroelectric units in Jharkhand to the Jharkhand government. Source: Times of India

The center has decided to provide relief to traders facing a sealing crisis, which would shut down illegal commercial establishments in residential areas, by amending the Master Plan of Delhi (MPD) 2021 to allow uniform floor area ratio (FAR) and reducing penalty charges. Source: Economic Times

According to rules drafted by the Delhi government, vehicles older than 15 years will be impounded and sent to scrap dealers for dismantling. Source: Hindustan Times

Nothing critical to report this week.

The chief ministers of Uttar Pradesh and Haryana have renewed their “reciprocal transport agreement” with an increase in the number of routes that the government-owned buses can operate in each other’s state. Source: Times of India

The Karnataka state cabinet has approved the creation of a special purpose vehicle (SPV) and to share $54.3 million (20 percent equity) for Bengaluru’s suburban rail project. Source: Economic Times

The lowest price offered in the latest solar auction of 860 megawatts (MW) by Karnataka’s Renewable Energy Development Ltd (KREDL) was 4 cents per unit, higher than those seen in recent auctions in other state auctions. Source: Economic Times

The Ramthal project on drip irrigation, which included laying of over 1,300 miles of pipeline, was commissioned. Technical support for this project was provided by Israel-based Netafim, and will be operated by the state for the next five years. Source: Hindu Business Line

Madhya Pradesh announced its excise policy for 2018-19, under which shops selling alcohol will be closed that are in 165 feet proximity to religious places, educational institutions, and hostels for women. Source: Indian Express In Detail: Madhya Pradesh Excise Policy 2018-19 (in Hindi)

Madhya Pradesh chief minister Shivraj Singh Chouhan inducted three new members to his council of ministers. Source: NDTV

The World Bank signed a memorandum of agreement (MOU) with Rewa Ultra Mega Solar to provide a loan of $30 million to develop a 750 MW solar power plant in Rewa and a second one in Mandsaur in Madhya Pradesh. Source: Financial Express In Detail: IREDA Press Release

The Maharashtra state government’s general administration department introduced a three-step system, from desk officer to highestt official designated for final decision, for the approval of proposals. Source: The Hindu

The central finance ministry will allow Maharashtra government to increase its fiscal deficit from 2.7 percent to 3.3 percent, which will allow the state to borrow an additional $1.7-1.86 billion to carry out various infrastructure projects. Source: Asian Age

The Maharashtra government announced its telecom infrastructure policy, which intends to support the state’s digital ventures. Source: Hindu Business Line

The Maharashtra government has given its in-principle approval to convert 2,140 hectares of the Navi Mumbai Special Economic Zone (NMSEZ) into an “integrated industrial area,” 15 percent of which will be used for residential uses. Source: Economic Times

The Congress party won three assembly constituencies, previously held by the Bharatiya Janata party, in the recent by-elections. Source: The Hindu

Tamil Nadu chief minister laid the foundation stone for the first stage of the two units of 660 MW Udangudi Thermal Power Project, scheduled to be completed by 2021 by Bharat Heavy Electricals Limited (BHEL). Source: The Hindu

The Government of India, the government of Tamil Nadu, and the World Bank signed a $100 million loan agreement to promote rural enterprises, facilitate their access to finance, and create opportunities for youth particularly women, in the state, and is expected to benefit over 400,000 people. Source: Business Standard In Detail: Press Release for the Tamil Nadu Rural Transformation Project

Nothing critical to report this week.

Nothing critical to report this week.

West Bengal’s finance minister Amit Mitra presented the state budget for 2018-19. Source: Business Standard In Detail: West Bengal State Budget 2018-2019


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