Update on India’s States: July 26, 2017


Andhra Pradesh creates a drinking water supply corporation; Gujarat tops investment potential rankings once again; Tamil Nadu doubles legislator salaries; calm restored in Nagaland and Tripura; and more.

Center–State relations

The central government will work with Andhra Pradesh, Tamil Nadu, Maharashtra, Karnataka, Gujarat, Telangana, and Assam to build 34 mega-logistics parks with an investment of $30.9 billion. State governments will provide the land, while development will be done through public-private-partnerships. Source: Economic Times

The Comptroller and Auditor General (CAG) issued a scathing report on state and central expenditures under the Right of Children to Free and Compulsory Education Act, 2009. Over the first six years of the act’s operation, states were unable to spend more than $13.5 billion in funding released by the center. Source: LiveMint In Detail: CAG Report

The Ministry of New and Renewable Energy held its first-ever wind auction, signing Power Purchase Agreements for 1,050 megawatts (MW) of capacity from four private sector companies at a rate of 5 cents per kilowatt-hour. Uttar Pradesh will receive 450 MW, Bihar 200 MW, and Jharkhand 200 MW. Source: DNA India


The Andhra Pradesh cabinet approved a proposal for a water corporation to supply drinking water to state residents. The corporation will be mandated to supply 100 liters of drinking water to every family and to monitor the drinking water supply. It is unclear how the corporation will fund its operations. Source: Times of India

In cooperation with Energy Efficiency Services Ltd., Andhra Pradesh will replace 1 million conventional street lights with LED lights. The project will cost $38 million up front and estimated savings are over $25 million per year. Source: The Hindu


Nothing critical to report this week.


The National Highways Authority of India (NHAI) granted in-principle approval for construction of Regional Rapid Transit corridors linking Delhi to Panipat in Haryana and Alwar in Rajasthan. The approval means that NHAI will obtain land for the corridors, reducing construction time. Source: Hindustan Times

The Delhi government will nearly double the honoraria of the region’s 22,000 maternal and child healthcare workers. Salaries of fully-trained workers will increase from $77 to $150, while assistant salaries will increase from $39 to $75. Source: Business Standard

Gujarat and Delhi once again topped a National Council of Applied Economic Research ranking of 21 states and Union Territories according to investment potential. Indicators were divided into six pillars: labor, land, infrastructure, economic climate, governance and political stability, and confidence. Source: Economic Times In Detail: NCAER State Investment Potential Index 2017

Gujarat’s proposal for climate adaptation projects has been approved by the Union Ministry of Environment, Forests and Climate Change. The proposal focuses on increasing the adaptive capacity of communities dependent on natural resources in the Kutch district. Projects approved by the National Steering Committee on Climate Change will receive funds under the National Adaptation Fund for Climate Change. Source: Hindu Business Line


The Haryana Electricity Regulatory Commission (HERC) raised power tariffs by up to .7 cents per unit. The increase does not apply to domestic consumers with a monthly consumption of up to 150 units. Source: Money control

Chief Minister Manohar Lal Khattar has established a 6-person cell in his office to lead efforts to raise the quality of education and skills training in the state. The cell, supported by the Dell Foundation, will work closely with the state departments of higher education, school education, technical education and skills, and industrial training. Source: Indian Express


The European Investment Bank (EIB) has agreed to a loan of $565 million to support construction of Phase II of the Bengaluru Metro. The funds will likely be used for the construction of the 14-mile Gottigere-Nagawara line, with 12 underground and six elevated stations. Source: Economic Times


The Madhya Pradesh Assembly passed a bill imposing a complete ban on plastic carry-bags in the state to reduce garbage in the state. Source: NDTV


The Maharashtra urban development department issued draft rules to regularize the status of unauthorized construction completed before December 31, 2015. The rules would legalize thousands of unauthorized buildings and structures in cities across the state on payment of a fee. Source: Hindustan Times

The state government approved debt financing for four Mumbai Metro projects to be built at a total cost of $5.93 billion. One project will be financed through loans from the Asian Infrastructure Investment Bank. Source: Hindustan Times


Rajasthan’s proposal for climate adaptation projects has been approved by the Union Ministry of Environment, Forests and Climate Change. The state’s efforts will focus on water security. Projects approved by the National Steering Committee on Climate Change will receive funds under the National Adaptation Fund for Climate Change. Source: Hindu Business Line


Tamil Nadu nearly doubled the salaries of members of the state legislative assembly, from $851 per month to $1,625 per month. Source: Economic Times

The state government has declared 57,000 acres in the Cuddalore and Nagapattinam districts as a Petroleum, Chemicals and Petrochemicals Investment Region. The central government will contribute $178 million to improve infrastructure in the area. Source: Times of India


Nothing critical to report this week.


Uttar Pradesh will provide free grid connections for state residents living below the poverty line. Connections would otherwise cost from $1.23 to $1.85. Source: Business Standard

Uttar Pradesh will introduce telemedicine clinics that will allow residents who are not in easy reach of a hospital to receive medical consultations over the phone. The state will establish control rooms in five cities, each with a team of doctors available 24/7. Doctors will be able to prescribe medication over the phone. Source: Financial Express

Nothing critical to report this week.

Best of the Rest

Assam

The Government of Assam has joined hands with Invest India, the parent organization of the Startup India initiative, to launch its first start-up policy. The state government aims to foster a vibrant support ecosystem for start-ups in Assam and establish the state as an entrepreneurial hub of Northeast India. Source: Inc42.com In Detail: Draft Startup Policy

Nagaland

TR Zeliang was sworn in as chief minister of Nagaland after the state’s governor sacked his predecessor Shurhozelie Liezietsu. Liezietsu had failed to appear for a vote of confidence. Zeliang expanded his cabinet to 12, with nine ministers from the Naga People’s Front and two from long-term ally the Bharatiya Janata Party. Source: Economic Times

Tripura

The Indigenous People’s Forum of Tripura, a political party that claims to represent the state’s indigenous tribal population, lifted its blockade of the state’s highways and railway after 11 days. The blockade, in support of the group’s demand for statehood, had cut off the state from the rest of the country and created shortages of essential goods. Source: Scroll.in

See the entire digest at Engaging Indian States.

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