Update on India’s States: March 15, 2017

Election results in five states were announced on March 11. The Bharatiya Janata Party (BJP) won landslide victories in Uttar Pradesh and Uttarakhand, and will form governments in Manipur and Goa with the support of smaller parties. Congress won power in Punjab, while the Aam Aadmi Party (AAP) made a disappointing showing. Source: First Post, The Hindu

Delhi, Haryana, Rajasthan, and Telangana present their budgets; Kerala commissions India’s largest floating solar power plant; West Bengal revamps its single-window clearance; and more.

Center-State relations

States have begun clearing their stalled capital projects and increasing public sector investment. According to Deutsche Bank, the states’ project completion rate rose by 104 percent in the first three quarters of the current fiscal over the same period last year. The center’s project completion rate fell 13 percent in the same period. Five states (Maharashtra, Uttar Pradesh, Telangana, West Bengal and Punjab) were responsible for almost 83 percent of the increase. Source: Money Control

The Andhra Pradesh Information Technology department has created a special fund of $15 million to provide funding to start-ups and hopes to raise a further $60 million from private investors. Source: Deccan Chronicle

The Andhra Pradesh government signed a memorandum of understanding (MOU) with Singapore-based financial technology (fintech) firm Lattice 80 to establish a fintech incubation center in the state. Source: Hindu Business Line

Bihar announced that 35 percent of Public Distribution System shops will be reserved for female proprietors. The policy means that at least 4,500 women will become proprietors of the shops, which sell subsidized food grains. Source: Indian Express

The AAP government presented its $7.2 billion budget for the 2017-18 fiscal year. The budget focuses on education, healthcare, transportation, and social sectors. Education will receive the largest allocation, $1.7 billion, while $860 million will be spent on health and $826 million on transportation. Delhi registered a growth of 20.84 percent in tax collections in 2016-17 compared to 13.61 percent growth in 2015-16. Source: Money Control, Hindu Business Line

Tata Power Delhi Distribution Ltd (Tata Power-DDL) has joined with telecom equipment maker Nokia to modernize electrical grids. Nokia has provided Tata Power-DDL with an Internet protocol/multiprotocol label switching network to support the management of its electrical grids in north and north-west Delhi. Source: First Post

Welspun Steel Ltd. received environmental clearance to set up an integrated steel plant with production capacity of 3 million metric tons per year in Kutch district at an estimated cost of $2.2 billion. Source: Economic Times

Prime Minister Narendra Modi announced that the central government will upgrade eight highways in Gujarat to National Highways at a cost of $1.8 billion. Source: Indian Express

Haryana’s finance minister presented the state’s 2017-18 budget, which targets growth of 9 percent by the end of the fiscal year. The budget includes allocations of $480 million for agriculture and allied activities, an increase of 18.8 percent over the previous year. The budget also reduces electricity charges by .7 cents per unit. Source: Economic Times

The land records of 6,603 villages (94 percent) in Haryana have been digitized and integrated with property registration software and can now be accessed online. Source: Money Control

Samsung India has entered into a partnership with Karnataka government to help the state efficiently manage its public healthcare facilities. The Samsung Research & Development Institute, Bangalore (SRI-B) provided 1,000 Samsung IRIS tablets to the state’s Department of Health. The IRIS is approved for Aadhaar verification and will enable the state’s Public Health Centers to build a digital database. Source: Business Standard

The Karnataka Solar Power Development Corporation has managed to acquire 12,000 of the 13,000 acres identified for the Pavagada solar park, allowing it to start infrastructure work. The state hopes to generate around 2,700 megawatts (MW) from the park by the end of 2018. The park is being developed by the Karnataka Solar Power Development Corp. Ltd., a joint venture between Karnataka Renewable Energy Development Ltd and the Solar Energy Corp. of India. Source: Livemint

Karnataka government announced a $1.5 million “idea to proof of concept” fund. The state department of information technology will provide $75,000 to any female innovator to fund proof of concept validation, certification, and to manufacture pilot devices. Source: VCCircle

Chief Minister Shivraj Singh Chouhan met Singapore’s consul general Ajit Singh to discuss future investment strategies. They agreed that Singapore will help train state officials in trade facilitation. Source: Times of India

Renewable energy firm Gamesa announced that it has secured an order from Infrastructure Leasing & Financial Services for a 50 MW wind farm project at Amba, Madhya Pradesh. Source: Economic Times

The Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd. will make it compulsory for both commercial and residential consumers to submit a photograph while applying for a new power connection. Contractors installing supply lines will have to submit a report on how much supply is needed for each connection. The moves are meant to control power loss and avoid cases of overloading. Source: Times of India

Nothing critical to report this week.

Chief Minister Vasundhara Raje presented a $25 billion budget in the state assembly, including financial allocations for infrastructure development, transport, agriculture, higher education and water resources. The budget projected an estimated fiscal deficit for 2017-18 of $3.7 billion, 2.99 percent of the state’s domestic product, and estimated total revenue of $4.5 billion. Except for a 15 percent increase in the value added tax on tobacco products, no new tax proposal was made in the budget. Source: The Hindu

The National Thermal Power Corporation announced commissioning of a 45 MW capacity solar plant at Bhadla in Rajasthan, taking the total installed capacity of the project to 160 MW. Source: Economic Times

The Election Commission has announced by-polls for the RK Nagar constituency on April 12. The seat fell vacant following the death of former chief minister J Jayalalithaa in December 2016. Source: Hindu Business Line

Chief Minister K Palaniswami launched a housing scheme to build over 50,000 concrete homes for the poor, at an estimated cost of $238 million. Source: Indian Express

Unit 2 of the Kudankulam nuclear power plant reached its full capacity of 1,000 MW, becoming the second nuclear reactor in the country to generate 1,000MW. Source: Economic Times

State Finance Minister Etala Rajender presented a $22.4 billion budget for 2017-18. The budget increased allocation for the agriculture and power sectors as well as various welfare measures. Rajender said Telangana is projected to achieve growth of over 10.1 percent during the current fiscal. Source: Hindu Business Line

IT companies that want to open facilities in Hyderabad will no longer be entitled to subsidized land allotment from the government. Companies have to purchase land at the existing market rate and if there are multiple applicants for the same parcel of land, an open auction will be conducted by the government. Source: Deccan Chronicle

The BJP rode Prime Minister Modi’s popularity to a massive victory in Uttar Pradesh, winning 312 of the state’s 403 legislative assembly seats; the BJP’s allies have won 13 seats for a grand total of 325. Source: NDTV

West Bengal is revamping the Online Single Window Clearance System to allow investors to access 75 services and to get projects cleared across various departments within a stipulated timeframe. Source: Times of India

The state-run Power Finance Corp has sanctioned financial assistance of $408.5 million for West Bengal’s first super critical thermal power project in Murshidabad district. West Bengal Power Development Corporation Ltd will expand the Sagardighi Thermal Power Station with a new 660 MW unit. Source: Economic Times

Best of the Rest


The National Thermal Power Corporation began power generation from India’s largest floating solar power plant at Kayamkulam. The 100 kilowatt peak floating solar generation plant was indigenously developed at the Rajiv Gandhi Combined Cycle Power Plant in Kerala’s Kayamkulam district, the company said. Source: Economic Times


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