Update on India’s States: June 2, 2016


Karnataka amends its land acquisition law to make it easier to buy land for infrastructure; Andhra Pradesh signs first ever 99-year lease (with an option to buy); the Union Cabinet approves 13 new Smart Cities and 6 new IITs and more.

Center–State relations

The central government has approved 13 more cities to be developed as smart cities. Lucknow in Uttar Pradesh came first in the competition. Cities in Telangana, Himachal Pradesh, Chandigarh, Chhattisgarh, West Bengal, Bihar, Goa, the Andaman and Nicobar Islands, Manipur, Jharkhand, Tripura, and Haryana were also chosen. Source: Economic Times

In Detail: Press Release

The Cabinet Committee on Economic Affairs (CCEA) approved railway projects worth $1.6 billion to improve infrastructure, double rail lines, and introduce new lines through busy routes. The projects will primarily benefit Uttar Pradesh and Gujarat, both of which have state elections in 2017. Source: Economic Times

The union cabinet approved the establishment of six new Indian Institutes of Technology (IITs) in Andhra Pradesh, Kerala, Karnataka, Chhattisgarh, Goa, and Jammu and Kashmir. The Indian School of Mines will also be credentialed as an IIT. Source: Economic Times

In Detail: Press Release

The Union Ministry of Urban Development will provide $824 million to six states (Madhya Pradesh, Gujarat, Rajasthan, Odisha, Jharkhand and Meghalaya) to fund urban renewal projects Source: Press Release

Chief Minister Chandrababu Naidu announced that e-office systems, online portals for storing and tracking public documents, will open in all 13 districts of Andhra Pradesh in June on a pilot basis. The systems will open the way to increased e-filing of government forms. Source: Economic Times

The Andhra Pradesh State Investment Promotion Board (SIPB) is allowing a Chinese firm, Hareon Solar Private Limiter (HSPL), to set up a manufacturing unit for solar panels in Vishakhapatnam, and to buy the land to set up the unit instead of leasing it for the maximum of 99 years. Source: Deccan Chronicle

The central government has approved the foundation of the National Institute of Technology in Andhra Pradesh. Source: Firstpost

In Detail: Press Release


Nothing critical to report this week.

A new Associated Chambers of Commerce and Industry survey found that the national capital region created the highest number of jobs in the first quarter of 2016, with 260,000 new jobs created from January to March 2016. The survey covered eight of India’s largest cities. Source: Economic Times


Nothing critical to report this week.


Chief Minister Manohar Lal Khattar met with the head of Moscow’s Department for Foreign Economic and International Relations to discuss cooperation opportunities in areas of aerospace and semi-conductor chip manufacturing. Source: Financial Express

The Jat community in Haryana has threatened to renew state-wide protests demanding reservations for the community in government jobs and public education. The government has deployed central forces to seven of the most vulnerable districts in the state. Source: India Today


The Karnataka cabinet amended the Karnataka Land Reforms Act to allow the government to buy up to 100 acres of land at a pre-set rate for public infrastructure and housing projects. Source: Economic Times

Under the recently introduced Karnataka On-demand Transportation Technology Aggregator Rules, Taxi aggregator services like Uber and Ola will have to cease operation till they have acquired the new licenses that allow them to recruit drivers and provide online taxi hailing service.

Source: Hindustan Times

The central government and the World Bank have signed a $100 million loan agreement to carry out the Karnataka Urban Water Supply Modernisation project. The project is meant to improve water delivery service for more than one million residents of Karnataka. Source: Economic Times

Detailed: Press Release, Press Release

State-run Bharat Heavy Electricals Ltd has commissioned the first of two units at the 2×800 megawatt (MW) Yeramarus Thermal Power Station (TPS) in Raichur, Karnataka. Source: Economic Times

Nothing critical to report this week.


The Maharashtra cabinet approved changes to its special township scheme to allow for increased construction density in former “green belts” while requiring that developers build a certain number of affordable housing units in each development. Source: Indian Express


Sanjay Vijayakumar, who helped to found India’s first public-private technology business incubator in Kerala, has been appointed an Advisor to the Rajasthan government’s Start-up Council. The Council is tasked with creating a start-up ecosystem in the State. Source: Hindu Business Line


The Tamil Nadu Generation and Distribution Corporation received environmental clearance for its proposed 2×800 MW coal-fired power plant in Ramanathapuram district. Source: Hindu Business Line

Telangana Minister for IT and Industries KT Rama Rao met with Jeffrey Katzenberg, CEO of Dreamworks, at the company’s LA office to discuss investment possibilities in Telangana. Source: Hindu Business Line

Institutional lending to micro, small, and medium enterprises in Telangana saw a sharp rise in 2015-16. Banks disbursed $2.5 billion loans to the SME segment in last financial year, 161 percent more than the previous year. Source: Business Standard


Nothing critical to report this week.


Trinamool Congress head Mamata Banerjee began her second term as chief minister of West Bengal. She also swore in 41 ministers, including 17 new faces. Source: The Hindu


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