Update on India’s States: July 7, 2017

The GST comes into effect nationwide; Maharashtra in a severe budget crunch; communal clashes in West Bengal; Karnataka launches an ambitious skills training program; and more.

Center–State relations

The nation-wide Goods and Services Tax (GST) went into effect at midnight on July 1. On July 5, Jammu and Kashmir’s legislative assembly passed a resolution requesting that President Pranab Mukherjee extend the GST to the state, which must approve most central laws. Source: Business Standard, NDTV


The National Stock Exchange of India signed a memorandum of understanding (MoU) with Andhra Pradesh government to help micro, small, and medium enterprises in the state to raise capital by listing them on the bourse’s platform for small and medium enterprises. Andhra Pradesh will offer financial and administrative support to help the companies get listed. Source: Money control

The Andhra Pradesh Gas Distribution Corporation (APGDC) awarded the work order to a private company to construct the first phase of a planned coastal natural gas pipeline. The segment from Kakinada to Visakhapatnam will be the first section of two planned pipelines. Source: Times of India


Bihar announced that it is in the initial stages of planning for a 3,000 megawatt (MW) nuclear plant in Nawada district, a senior minister. The site has been selected and an initial survey completed, although the state still needs to acquire the 3,000 acres of land necessary to build the plant. Source: Financial Express


Nothing critical to report this week.


Nothing critical to report this week.


The Haryana government released a strategic plan called ‘Vision 2030.’ The plan’s key objectives are raising state gross domestic product growth to 9.8 percent and developing industrial clusters in each district of the state. Source: Hindu Business Line In Detail: Vision 2030

The municipal corporations of Gurugram and Faridabad signed an MoU to develop Haryana’s first integrated solid waste management project. The project, costing over $66.3 million, will allow the cities to collect, transport, process, and dispose over 1,250 tons of waste per day. Source: Business Standard

The Union Ministry of Power has approved an additional $69 million for Haryana’s $208 million upgrade of Gurugram’s power sector. The central government had already committed $42 million to the project. Source: Economic Times


Karnataka launched the ‘Yuva Yuga’ project to provide skills training in new technologies and create over 1 million skilled jobs. The state aims to train over 100,000 participants in the current financial year. Source: Hindu Business Line

Karnataka announced grants totaling $490,000 to 12 start-ups specializing in agriculture, biotech, security, communications, and robotics under its Idea2PoC program. The companies were chosen based on their innovative use of technology, and the practicality and feasibility of their proposals. Source: Hindu Business Line


Nothing critical to report this week.


The Maharashtra finance department announced deep cutbacks in expenditure and imposed restrictions on spending. All government departments have been directed not to submit new expenditure-related proposals for the time being. The state’s commitment to a $5.25 billion farm loan waiver and to compensating municipalities for loss of revenue due to implementation of the Goods and Services Tax (GST) have increased its budget woes. Source: Indian Express

The state government will partner with Reliance Foundation, Tata Trusts, and USAID to implement Project Asman, which aims to use technology to reduce of maternal and early neonatal mortality rates in the Ajmer, Bhilwara, Jhalawar and Kota districts. Source: Times of India


Tamil Nadu completed its latest solar auction. The lowest bid came from Bengaluru-based Raasi Green Earth Energy, which won 100 MW at 5 cents per unit, down from 6.8 cents per unit in the previous auction. The biggest winner was public sector mining giant NLC India, which bid for the entire 1500 MW and won 449 MW. Source: Economic Times

Work has begun on Unit 3 of Tamil Nadu’s Kudankulam Nuclear Power Plant. The work, done in collaboration with a Russian company, is likely to be completed in a little over six years. Unit 3 and Unit 4 will each have a capacity of 1,000 MW. Source: NDTV


Nothing critical to report this week.


The Uttar Pradesh government named Rajiv Kumar as chief secretary. He replaces Rahul Prasad Bhatnagar. Source: First Post

The center approved a $570 million project to widen the Chakeri-Allahabad section of National Highway 2 in Uttar Pradesh. Source: Economic Times


Violent communal clashes erupted near the Bangladesh border in West Bengal in response to a Facebook post. A mob ransacked a police station, burning several cars in the area, and then blockaded the road leading into the town of Baduria. Internet services in the area were turned off and the central government deployed three companies of federal forces to the area. Source: Times of India, Medianama,

Best of the Rest

Jharkhand

Jharkhand will offer a 50 percent subsidy to private households towards the cost of solar rooftops and a 10 percent subsidy to industry. Source: Daily Pioneer

Arunachal Pradesh

Arunachal Pradesh has launched the e-Inner Line Permit (eILP) to make it easier for Indian visitors to the frontier state to apply for the necessary permits. The online portal will allow applicants to submit the necessary documents and photographs and to pay for the permit. Source: Economic Times

See the entire digest at Engaging Indian States.

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