Update on India’s States: June 29, 2017


Pune announces India’s largest municipal bond issue; Indian and Chinese companies join to build solar panels in Gujarat; Rajasthan tenders solar power at a new record-low rate; the ADB will pay to skill 200,000 Odisha residents; and more.

Center–State relations

Goods and Services Tax Tracker: All 29 states except Jammu & Kashmir have either passed legislation or issued an ordinance bringing the GST into effect. If it does not pass enabling legislation, Jammu & Kashmir will lose its ability to levy taxes on September 15.

The World Bank and Asian Infrastructure Investment Bank (AIIB) will jointly loan Andhra Pradesh $380 million to help the state improve the quality of power supply. The World Bank and AIIB will provide funds in a 60:40 ratio. Source: Economic Times In Detail: Press Release

Cerner, a U.S.-based health information technology company, signed a Memorandum of Understanding with the state Department of Health, Medical and Family Welfare to supply Health Information Exchange services, analyze data from the ongoing health programs, and make policy recommendations. Source: The Hindu

Andhra Pradesh’s electricity distribution companies (discoms) have asked the state power regulator to unilaterally lower the per-unit tariff in the state’s power purchase agreements (PPAs) for wind energy. The discoms signed PPAs for wind power generators in 2015 at prices between 7.3 and 7.4 cents per unit. Two years later, however, bids in other tenders have fallen as low as 5.3 cents per unit. Source: Financial Express


Governor Ram Nath Kovind of Bihar has resigned following his nomination as the presidential candidate of the governing Bharatiya Janata Party. Source: Economic Times


The aviation ministry approved plans for an airport at Jewar in Greater Noida, the second airport in the Delhi region. The government expects the airport to be operational in the next five to six years. Source: Economic Times

The Delhi Metro Rail Corporation unveiled a solar policy that calls for it to meet nearly a sixth of its power requirements from solar energy. DMRC may install solar panels on roof sheds and in parking lots. Source: Business Standard


Tata Power, concerned that its Mundra Ultra Mega Power Project will become a non-performing asset, and has offered to sell a 51 percent stake in the project to the Gujarat government for 1 cent, plus help in covering production costs. Source: Financial Express

The Adani Group signed a deal with China’s East Hope Group to build a manufacturing unit for solar power plants in Gujarat. East Hope plans to invest more than $300 million in the plant. Source: Economic Times


Haryana will waive wheeling charges on transmission of electricity generated from solar power plants in the state. Source: Economic Times

Gram panchayats (village councils) in Haryana will now be responsible for development projects up to the value of $30,960, twice the former total. Source: Daily Pioneer


Nothing critical to report this week.


Madhya Pradesh launched the Madhya Pradesh Venture Finance Limited (MPVFL), which will fund a Small and Medium Enterprise Innovation Fund with a total corpus of $15.4 million. Source: Inc 42

The Asian Development Bank will provide $275 million loan for a piped water supply project for rapidly urbanising small towns in Madhya Pradesh. The state government will provide an additional $124 million for the project, which will cover 300,000 households. Source: Economic Times In Detail: Press Release


Pune Municipal Corporation launched India’s largest-ever municipal bonds issue to finance its 24×7 water supply project. The city looks to raise $350 million in five years. Pune’s bond issue is the first since publication of new regulations on municipal debt issues in 2015. Source: Hindustan Times

The state government now has the power to disqualify elected representatives to municipal corporations, councils, district councils, and other local bodies. If disqualified, a local representative will now have to file an appeal with the Maharashtra government instead of the high court.

Source: Hindustan Times

Maharashtra will no longer require permits for autorickshaws and taxis in cities. The state government has discontinued an order limiting the number of such vehicles allowed on the roads. Source: Money control


The Solar Energy Corporation of India tendered a 750 megawatt (MW) solar park at Bhadla in Rajasthan with a benchmark price of 6 cents per kilowatt hour (kWh), lower than the previous record price of 6.8 cents per kWh. Source: Economic Times


Farmers in Tamil Nadu can take advantage of a 90 percent subsidy on solar-powered irrigation pump sets if they agree to leave the waiting list for electricity connections. Tamil Nadu will distribute 1,000 solar-powered irrigation pump sets of 5, 7.5 and 10 horsepower. Source: Hindu Business Line

Tamil Nadu introduced a new rule making applications for building permits ‘deemed approved’ if they did not receive a response within 30 days. Local bodies are now able to issue planning permission for ground-plus-one-floor or stilt-plus-two floors construction within their jurisdiction. Source: Times of India


Telangana plans to lend $17.6 billion in the current fiscal year, up from $14.05 billion in the previous year. Crop loans are expected to make up 34.8 percent of all lending. Source: Hindu Business Line

The Telangana government has launched “Hy-Fi” which will provide free high-speed wireless internet throughout the entire city. The project will involve 3000 wireless hotspots. Source: News18

State-run Energy Efficiency Services Ltd plans to distribute 10 million LED bulbs and other energy saving appliances in Telanganaunder the UJALA scheme. Telangana residents will be able to buy 9 watt LED bulbs, 20 watt LED tubelights and energy efficient fans at a cost of $1.08, $3.56, and $17.80, respectively. Source: Hans India

 


The state government released a draft Solar Energy policy for comments. The policy seeks to create sufficient solar power to meet Uttar Pradesh’s 8 percent renewable purchase obligation and to meet the target of 10.7 gigawatts of solar power capacity by 2022. Source: Daily Pioneer In detail: Uttar Pradesh Draft Solar Policy 2017


Nothing critical to report this week.

Best of the Rest

Odisha

The Asian Development Bank approved a $102 million loan to train 200,000 Odisha residents aged 15-34 years. Participants will receive skill development training to make them eligible for higher paying jobs. Source: Money control

See the entire digest at Engaging Indian States.

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