Update on India’s States: June 9, 2016


Rajya Sabha elections take place on June 11; Andhra Pradesh is the likely new home of the Westinghouse nuclear power plant; Gujarat announces its start-up policy for the IT industry; Karnataka suspends Uber and Ola; Rajasthan repeals hundreds of obsolete laws; and Telangana signs an MOU on innovation and renewable energy with the state of California.

Center-State relations

The state legislative assemblies of Uttar Pradesh, Karnataka, Rajasthan, Madhya Pradesh, and Haryana will elect new members to the upper house of India’s parliament, the Rajya Sabha, on June 11. Source: Economic Times

Gujarat, Karnataka, Maharashtra, Tamil Nadu, and West Bengal are urging the central government to turn over to the states the control of tax assessment and dispute resolution for businesses with an annual turnover of $225,000. Source: Business Standard

The Andhra Pradesh government and ZTESoft, a Chinese telecommunication firm, have agreed to an 85:15 joint venture to set up an incubation center and smart city innovation hub in Kakinada. Source: Livemint

Toshiba Corporation’s Westinghouse Electric has decided to relocate a planned six nuclear reactors to Andhra Pradesh. The project was originally slated to be built in Gujarat. Source: Business Standard

The Andhra Pradesh government has decided to form a joint venture/Special Purpose Vehicle with AP Transco, AP Genco, AP Discoms and Energy Efficiency Services Limited (EESL), to boost work on energy efficiency. The Andhra Pradesh State Energy Efficiency Development Corporation Limited (AP Seedco) will have its headquarters in Amaravati. Source: Hindu Business Line

Chief Minister Nitish Kumar formally implemented the Public Grievance Redressal Act, which fast-tracks the state’s complaint redressal process. The Act, passed last year, gives citizens the right to know the status of response to their complaints. Source: Business Standard

The Ministry of Urban Development announced a $3 billion development package to decongest the national capital and recommended a set of stringent traffic control measures, including the introduction of a congestion tax. Source: The Hindu

Delhi chief minister Arvind Kejriwal met Japanese Ambassador to India Kenji Hiramatsu to discuss cooperation with Japan on infrastructure and sewage projects Source: Economic Times


The Gujarat government announced its first ever ‘IT and Electronics Start-up Policy’, which seeks to encourage new ventures by providing incentives and subsidies. Gujarat hopes to develop 50 incubators that will mentor and guide 2,000 start-ups over the next five years. Source: Economic Times

In Detail: Scheme of Assistance for Development of EMCs under Electronics Policy (2016-21)

In Detail: Scheme of assistance for IT/ITeS Industry under IT/ITeS Policy (2016-21)

An 18-member trade delegation of small and medium size enterprises from Gujarat, Karnataka, and Maharashtra will visit the US to explore investment opportunities and partnerships. The group will participate in the SelectUSA investment event being held in Washington, D.C. from June 18 to June 23. Source: Times of India

The Gujarat International Finance Tec-City Company Limited, popularly known as GIFT city, has entered into an agreement with a Singaporean arbitration center to resolve international commercial disputes involving Indian companies. Under the agreement, GIFT and Singapore International Arbitration Centre will collaborate to promote the use of arbitration, mediation, and other dispute resolution mechanisms. Source: Economic Times


Indian Railways signed a memorandum of understanding with the Haryana government to establish a joint venture entity for development of rail infrastructure in the state. The state government will have a 51 percent stake in the joint venture. Source: Financial Express

In Detail: Press Release

Beginning June 4, the Sonipat District Magistrate shut down all mobile internet services in the area in order to prepare for possibly violent protests by the Jat community. Paramilitary forces have also been deployed in several districts. Source: Indian Express

A delegation from China Fortune Land Development Co. met Haryana Industries and Commerce Minister Captain Abhimanyu to discuss investment opportunities and the possibility of establishing a JV in the state. Source: Economic Times


Faced with a supply surplus, the Karnataka Electricity Regulatory Commission will now allow power producers to sell their surplus outside the state. Producers will also no longer be required to produce at 100 percent capacity. Source: Business Standard

Karnataka has approved a further 260 megawatts (MW) of solar capacity, first allotted in its March solar auction. Fourteen projects of no more than 20MW each will be spread across the state. Source: Bridge to Solar

Karnataka has directed taxi aggregators such as Uber and Ola to cease operations in the state until they secure a licence from the government, which will require that they end surge pricing, comply with the maximum fares fixed by the government, and register with local transport authorities. Uber has appealed the decision in the Karnataka High Court. Source: Business Standard, Business Standard

Freedom of assembly has been suspended in Madhya Pradesh’s Betul district due to growing unrest over the water crisis in the region. All construction works have also been stopped. Source: Deccan Chronicle


Chief Minister Devendra Fadnavis met with a delegation from Malaysia’s Construction Industry Development Board to discuss ways to increase collaboration on the Nagpur-Mumbai Super Communication Expressway and some other road projects.  Source: Hindu Business Line

Maharashtra revenue minister Eknath Khadse, the second most powerful figure in the state government, was forced to step down after becoming embroiled in multiple scandals, including corruption allegations in a questionable land deal and alleged links with mafia don Dawood Ibrahim. Source: Business Standard

Chief Minister Devendra Fadnavis approved a 32-km Metro connecting Mumbai to Thane.  Source: IB Times

IndiaBanners_CogitAsia_states_RajasthanThe Rajasthan government has repealed 248 obsolete principal and amending Acts, becoming the first state in the country to prune its legal code. The government is now working with NITI Aayog to consolidate remaining laws. Source: Times of India


The union cabinet approved an investment of $564 million for the first phase of the Chennai Metro Rail project. The 9 km corridor will be built by Chennai Metro Rail Ltd, a special purpose vehicle formed by the national and state governments. Source: Business Standard

In Detail: Press release

The Japan International Cooperation Agency has agreed to provide a loan of $232 million to improve the quality of urban healthcare services in Tamil Nadu. The funds will be used to increase the capacity of key hospitals and to upgrade facilities, equipment, and human resources, with a focus on non-communicable diseases. Source: Hindu Business Line

Telangana IT minister KT Rama Rao signed a memorandum of understanding with the government of California governing cooperation in a number of sectors, including business innovation, alternative energy, and education. Telangana is also considering setting up an outpost of its state-run start-up incubator, T-Hub, in Silicon Valley. Source: Economic Times, Economic Times


The Akhilesh Yadav government has imposed a 5 percent tax on all e-commerce purchases that enter Uttar Pradesh. The tax still has to be approved by both houses of the state legislature before it comes into force. Source: Financial Express

Clashes between police and armed members of a cult resulted in the deaths of 24 people, including two police officers. Police were attempting to clear a long-term encroachment on public land in central Mathura. Source: Business Standard

IndiaBanners_CogitAsia_states_WestBengalNothing critical to report this week.


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