Update on India’s States: June 22, 2016


Karnataka and Goa join power bailout UDAY scheme, Gujarat introduces local content rules for government purchasing, Madhya Pradesh chief minister Shivraj Singh Chouhan travels to China, Rajasthan to tax e-commerce purchases when the goods come from out of state, Telangana to host liaison officers from investing countries in Hyderabad and more.

Center–State relations

Karnataka and Goa have joined the center’s Ujwal Discom Assurance Yojana (UDAY), a bailout scheme for the power sector that allows state governments to take on the debt held by state-owned power distribution companies. Although 12 states have now joined the program, so far only Gujarat and Madhya Pradesh are planning to adjust tariffs to reduce their debt load. Source: Economic Times, Business Standard

Karnataka, Odisha, Rajasthan, Telangana, and Maharashtra are expected to auction off 20 iron ore blocks to private buyers in 2016-17. Odisha auctioned off an iron ore mine to the Essar group in 2015. Source: Hindu Business Line

Nothing critical to report this week.

Nothing critical to report this week.

The Delhi government has approved the formation of 2,972 Mohalla Sabhas (neighborhood assemblies) across 70 constituencies in an attempt to encourage local participation in governance. Members of the councils will be empowered to allocate $452 million in local development funds and to monitor neighborhood clinics, dispensaries, and schools. Source: Economic Times

According to the Comptroller and Auditor General (CAG) report, total investment in 17 public sector undertakings (PSUs) in Delhi increased by 21 percent to $4.1 billion in 2014-15. Source: Hindu Business Line

IndiaBanners_CogitAsia_states_GujaratThe Gujarat government has introduced a new Purchase Policy that is aimed at benefiting micro and small-scale industries. The policy mandates that government departments purchase products manufactured in India, and obtain approval from the department secretary before procuring material from abroad. Small businesses will receive exemptions from tender form fees or an earnest money deposit (EMD), and will be able to win bids even if their prices are 10 percent higher than those of large and medium businesses. Source: Indian Express


The Haryana government is introducing a Mini Cluster Development scheme that is directed at helping micro and small enterprises (MSEs) to form clusters in specific industries. The policy will assist these MSEs to create self-help groups and build common facility centers for testing, design, and research and development. Source: Economic Times

IndiaBanners_CogitAsia_states_KarnatakaChief Minister Siddaramaiah conducted a major cabinet reshuffle, removing 14 ministers and inducting 13 others. The move was seen as an attempt to hit the refresh button prior to Assembly elections in 2018. Source: Indian Express

Karnataka became the third state in the country, after Bihar and Haryana, to establish a State Food Commission that will monitor the state’s public distribution system. Source: The Hindu

Madhya Pradesh chief minister Shivraj Singh Chouhan is currently on his second trip to China to seek investments from Chinese businesses and the Asian Infrastructure Investment Bank in infrastructure, food processing, automotive, and manufacturing. Chouhan is expected to address a business forum with Chinese CEOs, meet with leadership of telecom giant Huawei, and visit Guangzhou. Source: Business Standard


Nothing critical to report this week.

IndiaBanners_CogitAsia_states_RajasthanThe Rajasthan government has begun imposing a 5.5 percent entry tax on goods that are purchased outside of the state via e-commerce. Goods will be exempt if value added tax was paid before the goods are sold online. Source: Tribune India

Wind energy developers in Rajasthan are facing losses of up to $22 million in April and May alone as Rajasthan’s state distribution companies (discoms) are arbitrarily cutting their intake of wind power, sometimes two or three times in a day. Source: Economic Times

IndiaBanners_CogitAsia_states_TamilNaduTamil Nadu chief minister J Jayalalitha met with prime minister Modi in Delhi and submitted a 29-point memorandum that touched on Tamil Nadu’s continuing opposition to the Goods and Services Tax (GST) and the state’s demand for a Cauvery Management Board to restore water levels and oversee interlinking of rivers. Jayalalitha also requested the speedy commissioning of the second unit of the Kudankulam nuclear power plant. Source: The Hindu

ABB Ltd, a power technology and automation provider, announced it has successfully commissioned five substations to integrate a 648-MW solar power project in Tamil Nadu. The project was awarded by independent power producer Adani Power in 2015. Source: Hindu Business Line

The Union ministry of commerce has approved the establishment of two industrial corridors, Hyderabad-Warangal and Hyderabad-Nagpur, along major highways in Telangana. Source: Deccan Chronicle

The Telangana government will host liaison officers from investing countries in Hyderabad and create focused ‘country desks’ for important partner countries. Telangana will also hire private experts to form an investment promotion cell modeled after the Ministry of Commerce’s Department of Industrial Policy & Promotion (DIPP). Source: The Hans India, Deccan Chronicle

Telangana’s labor department is extending for an additional three years a government order that allows retail outlets and other establishments to remain open 365 days a year. Source: Hindu Business Line

The Telangana cabinet approved 25 investment proposals with a total investment outlay of $350 million (including a $100 million investment from IKEA) in the seventh wave of approvals after the institution of the Telangana State Industrial Project Approval and Self Certification System (TS-iPASS). TS-iPASS allows investors to apply online through a single window to receive the necessary permits. Source: Hindu Business Line


Nothing critical to report this week.

IndiaBanners_CogitAsia_states_WestBengalThe West Bengal government has launched the Gram Panchayat Management System (GPMS), an e-governance service that will allow residents living in villages to connect with their Gram Panchayats (village councils) online to ask questions and register anonymous complaints. The government promises to resolve all issues within 74 hours and to incorporate local languages in the service. Source: India Today


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