Update on India’s States: July 13, 2016

Eight states to build renewable energy transmission network from Tamil Nadu to Rajasthan with support from German bank KfW, World Bank to provide $290 million credit to improve livelihood opportunities in Bihar, new major port development in Tamil Nadu, West Bengal invites Korean power company to assess state-owned power utilities, Kazakhstan to support the development of Amaravati Rajasthan to expand e-mitra kiosks to allow traders to buy directly from manufacturers, Karnataka receives highest number of private equity investments and more.

Center – State relations

Eight states have issued tenders worth $745 million as part of an ambitious plan to develop a renewable energy transmission network along a “green corridor” from Tamil Nadu to Rajasthan. States will fund 20 percent of the corridor, with the balance provided by the center and German bank KfW. Source: Business Standard

The center has instituted a plan to develop organic farming zones through the creation of 10,000 clusters. Clusters cover at least 20 hectares, and each participating farmer will receive $295 from the national government for each acre of land they bring under organic cultivation. Maharashtra has formalized 932 clusters, followed by Madhya Pradesh and Rajasthan with over 500 clusters each. Source: Economic Times

The Central Board of Excise and Customs has formed a committee to determine administrative and assessment-related responsibilities in administering the Goods and Service Tax. State governments urged the center to allow the states to control assessment and collection for entities with an annual turnover of $220,000 or less. Source: Business Standard

The union ministry of power released its rankings for state-owned power distribution companies (discoms). Three of the four Gujarat-owned discoms received the highest grade (A+), the only discoms to do so. The discoms of Jharkhand and Meghalaya, along with two of five in Uttar Pradesh, received the lowest grade (C). Source: Business Standard Detailed: Full Report

The Andhra Pradesh government has signed a memorandum of understanding with SAP Software Solutions to set up a startup accelerator in Vishakhapatnam. Source: Hindu Business Line

Kazakhstan became the fourth country (after Singapore, Japan and China) to agree to partner with the Andhra Pradesh government to build Amaravati, the state’s new capital. Andhra Pradesh chief minister N. Chandrababu Naidu made the announcement on a visit to Kazakhstan, where he agreed to form a joint working group with government officials from Amaravati and Astana, the capital city of Kazakhstan. Source: Livemint

The Bihar state government and the central government signed a $290 million credit agreement with the World Bank to help improve livelihood opportunities for poor rural households across 32 districts in the state. The agreement will extend the National Rural Livelihood Project to the entire state. Source: Financial Express In Detail: Press Release, Project Document

Nothing critical to report this week.

Inox, an Indian wind energy service provider, will execute a 50 megawatt wind power project in Gujarat. The project was acquired from Atria Wind Power. Source: Money control

Gujarat intends to host a startup-focused investment summit in October 21-22 that will be the first of a series of sector-specific events in the run up to the next Vibrant Gujarat Global Investors’ Summit in January 2017. Source: Economic Times

The Haryana government will conduct e-auctions for leases of mining contracts for eight blocks in Ambala and 12 blocks in Panchkula. Source: Daily Pioneer

The Haryana government has decided to raise the salaries and pensions of its employees, which is expected to add an addition $595 million to the state budget. Approximately 280,000 employees and 180,000 pensioners will be affected by this change. Source: Business Standard

A new report by research firm VCC Edge finds that Karnataka received the most private equity investments in the first half the of year, with 144 deals worth $2.31 billion in the pipeline. Karnataka is followed by Maharashtra with 141 deals worth $1.14 billion. Source: The Hindu

Nothing critical to report this week.

Maharashtra chief minister Devendra Fadnavis expanded his cabinet to include 10 new members, increasing representation from the regions of Vidarbha, Marathwada, and North and West Maharashtra. Source: Business Standard

The state cabinet has approved the establishment of an independent authority that will be responsible for redressal of all disputes related to land acquisition. The authority will be established according to the terms of the Right to Fair Compensation and Transparency in Land Acquisition Act, 2013. Source: Indian Express

Wholesale markets across Maharashtra will go on indefinite strike starting July 18th in protest of recent amendments to the Agriculture Produce Market Committee Act. The amendments delisted fruits and vegetables and also gave the end buyer, rather than the farmer, responsibility for paying commission. Source: Indian Express
The National Highways Authority of India has selected Larsen & Toubro to develop a four-lane highway project in Rajasthan. The 111 km project is worth $133 million and is intended to connect the state’s western part to the eastern side. Source: Economic Times

The Rajasthan government has agreed to partner with Applicate IT Solutions, a business-to-business ecommerce firm, to set up 35,000 e-kiosks to allow traders and retailers to procure products directly from manufacturers. 18,000 of these kiosks will be set up in smaller villages across the state. Source: Economic Times, In Detail: e-mitra Website

The union cabinet has approved the establishment of a major port at Enayam near the city of Colachel. A special purpose vehicle will be formed for the development of the port, bringing in initial investments from the three existing ports in the state. Source: Business Standard, In Detail: Press Release

The Ministry of Environment and Forests has approved Reliance Industries Ltd to drill eight additional exploratory wells in Tamil Nadu. The exploration will establish the reservoir capacity and commercial viability of hydrocarbons in the area. Source: Business Standard

The Telangana government has reached an in-principle agreement to allow Larsen and Toubro to launch metro rail operations in the state in October. Source: Deccan Chronicle

The aviation ministry has agreed to provide $52 million to upgrade seven airports in Uttar Pradesh. Source: Economic Times

13 new members have been nominated to the state legislative council, eight of whom belong to the ruling Samajwadi Party, three from Bahujan Samaj Party, and one each from Bharatiya Janata Party and the Indian National Congress. Source: Business Standard

The West Bengal Electricity Regulatory Commission has signed a memorandum of understanding with Korea Electric Power Corporation to conduct a feasibility study to reduce transmission and distribution losses in the state. Source: Hindu Business Line

The West Bengal government will be setting up three biotechnology hubs (in Bardhaman, Kalimpong and Medinipur districts) to encourage more biotechnology innovations in the state. Source: Economic Times


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