Update on India’s States: March 1, 2017

The BJP makes major gains in local elections in Maharashtra and Odisha; India and the ADB agree on loans to develop the East Coast Economic Corridor; Madhya Pradesh begins net metering while Haryana requires rooftop solar at private schools; Sikkim becomes the 22nd state to join UDAY; and more.

Center-State relations

India and the Asian Development Bank (ADB) have signed pacts for loans and grants worth $370 million to develop the 500-mile Visakhapatnam-Chennai Industrial Corridor, the first phase of a planned 1,500-mile East Coast Economic Corridor. This first tranche of funding will be used to finance high-quality internal infrastructure in the Visakhapatnam and Yerpedu-Srikalahasti nodes and to build capacity for institutions engaged in corridor management. Source: Economic Times

India and the ADB signed a $500 million loan to expand inter-regional power connectivity and strengthen the transmission system to accommodate renewable energy-generation capacity. The loan will help the Power Grid Corporation of India add a total of 11,000 megavolt amperes transmission capacity in and between Chhattisgarh, Tamil Nadu, Kerala, and Rajasthan. Source: Economic Times

The Andhra Pradesh energy department is set to launch the ‘Solar Farming’ program, under which existing pump sets will be replaced with energy-efficient solar pumps that generate their own power. Farmers can sell surplus energy to the grid. Source: Financial Express

Finance Minister Abdul Bari Siddiqui of Bihar said that the state recorded 7.6 per cent growth over the past five fiscal years. The gross state domestic product at constant (2011-12) prices was $48.9 billion in 2015-16. Source: Indian Express

Delhi’s cabinet approved a 36 percent hike in the minimum wages for unskilled, semi-skilled and skilled workers. If Lieutenant Governor Anil Baijal approves the change, Delhi will have the highest minimum wage for the working class of any state in India. Source: Times of India

Delhi’s peak power demand may touch 6,600 megawatts (MW) this summer, surpassing last year’s peak of 6,261 MW — so far the highest ever recorded. Source: DNA India

Gujarat’s Bharatiya Janata Party (BJP) government unveiled a populist budget that emphasizes rural development, irrigation, and agriculture, and that does not introduce any new taxes. The budget also includes $89 million for the three smart cities of Ahmedabad, Surat, and Vadodara. The budget shows a total outlay of $25.7 billion for Fiscal Year2017-18, which is $3 billion more than in the previous fiscal year, and a surplus of $35.7 million. Source: Livemint, Economic Times

Subdued electricity demand coupled with surplus availability has led to a marked slowdown in the addition of new capacity from conventional energy sources in Gujarat. Installed electricity generation capacity of non-renewable sources grew by just 0.7 percent in 2015-16, compared to 6.2 percent in 2013-14. Source: Economic Times

The Haryana government will require all private schools in the state to install solar power systems. Girls’ schools will be able to apply for a grant to cover the cost of the systems at a rate of $300 per kilowatt. Source: NDTV

Haryana has created an online system to monitor the ratio of girl to boy children in the Panipat district. The system, called the sex ratio monitoring dashboard, will display monthly data collected from all villages in the district by the Health and Women and Child Welfare Departments. Source: Business Standard

Karnataka has offered a delegation of Taiwanese businessmen space for a dedicated ‘Taiwan Park’ near Bengaluru. Karnataka Minister for Large & Medium Industries & Infrastructure Development, R. V. Deshpande, Industry Commissioner Gaurav Gupta and Karnataka Udyog Mitra (KUM) Managing Director Shivakumar met with a delegation representing 10 businesses from Taiwan. Source: Hindu Business Line

Madhya Pradesh Urja Vikas Nigam, a public sector utility focusing on non-conventional sources of energy, is calling for applications from citizens interested in installing rooftop solar systems. Consumers will be able to sell excess power back to the state government. Source: Economic Times

The BJP won 82 seats in the fiercely fought Greater Mumbai Municipal Corporation polls, just two seats less than erstwhile ally the Shiv Sena. Neither party, however, came close to the 114 seats needed to control the corporation. Source: Hindu Business Line

In an effort to protect the environment and improve water quality, the Maharashtra Industrial Development Corporation (MIDC) will take control of all effluent treatment plants in the state. The MIDC now has the power to monitor these plants and take decisions regarding the efficient treatment of effluents. Source: Hindustan Times

Maharashtra tops the list of states where cooking gas consumers have voluntarily given up or surrendered their liquefied petroleum gas subsidy. As of January 29, 1.73 million people in Maharashtra have renounced their subsidy, followed by 1.28 million in Uttar Pradesh and 790,000 in Delhi. Source: Indian Express

Rajasthan amended its mining policy to require e-auctions for all mines in the state. The shift is meant to increase transparency and competition. New mines will now be leased for 50 years. Source: Indian Express

Tamil Nadu has allocated land for 14 companies and an Advanced Computing and Design Engineering Centre at its ambitious Aerospace Park in Sriperumbudur. Source: Hindu Business Line

Tamil Nadu chief minister Edappadi K. Palaniswami relinquished the Finance portfolio, naming D. Jayakumar as Finance Minister. Source: The Hindu

The Telangana government launched Research and Innovation Circle of Hyderabad (RICH) an initiative by the government and private research establishments to convert basic research into marketable products or services. The state will attempt to raise $6.75 million from investors to support the project. Source: Business Standard

Tata Power Renewable Energy Ltd, a wholly-owned subsidiary of Tata Power, synchronised its 15 MW solar plant at Bellampally, taking Tata Power’s total installed operating capacity past 10,500 MW. Source: Hindu Business Line

Telangana signed a Memorandum of Understanding (MoU) with the National Bank for Agriculture and Rural Development for a loan of $130.7 million to bring micro-irrigation facilities to 315,000 acres over the next two years. Source: The Hindu

Uttar Pradesh reported voter turnout of 61 percent in the 53 Assembly constituencies that went to the polls on Thursday. This is an improvement on both the 2012 and 2014 figures. Source: Hindu Business Line

West Bengal will enter into a joint venture with the Gas Authority of India Limited (GAIL) to supply natural gas to every household in greater Kolkata. GAIL, which will control 74 percent of the venture, will finance the project while the stat will provide land and infrastructure. Source: Economic Times

The Power Grid Corporation has won a 765 kilovolt (kV) transmission project in the eastern part of the state following a competitive auction conducted by the Power Finance Corporation. Source: Economic Times

Best of the Rest


The BJP has emerged as the second-largest party in rural Odisha, pushing the Congress to third position, following district council elections. The ruling Biju Janata Dal (BJD) won 473 seats out of 846, while the BJP won 297 and the Congress won 60. Source: Financial Express


Sikkim has become the 22nd state to join the Ujwal Discom Assurance Yojana (UDAY)—the bailout program designed to free state electricity distribution companies from their debt burdens. Membership is estimate to bring the state a financial benefit of $53.3 million. Source: Economic Times


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