Update on India’s States: March 17, 2016


Andhra chief minister Naidu in London, setting up office; NCAER ranks Gujarat as the state with most investment potential; Haryana signs MoU with center on State Electricity Board rehab plan.

Center-State relations

Kerala, Tamil Nadu, Karnataka, Maharashtra and Gujarat were ranked as the top five states in terms of ‘good governance’ by Public Affairs Center in Bengaluru. ‘Good governance’ was measured according to 68 indicators that encompassed economic, social, and infrastructure development. Source: Indian Express

In Detail: Public Affairs Index: Criteria

Andhra Pradesh finance minister Yanamala Ramakrishnudu presented the budget for Fiscal Year 2017, which includes planned expenditure of $20.2 billion during 2016-17 and non-plan expenditure of $13 billion. The 2016-17 budget outlay is roughly 20 percent over estimates for 2015-16. Source: Hindu Business Line

In Detail: Andhra Pradesh Budget 2016-17

Andhra Pradesh presented a dedicated budget for the agriculture sector with a total outlay of $2.5 billion. It focused on large-scale promotion of farmer-producer organizations, covering one million producers in agriculture, horticulture, dairy, and aquaculture sectors. Source: Economic Times

Chief Minister N. Chandrababu Naidu, on a two-day visit to London, announced the opening of an office in London to attract investment and support for Amaravati, the new state capital. Source: The Hindu

Andhra Pradesh has provided $224 million as seed equity to allow the Capital Region Development Authority (CRDA) to raise funds from markets and institutions. It is estimated that $2.69 billion of investments will be required for construction of the new capital city. Source: Economic Times


Prime Minister Narendra Modi inaugurated three rail projects in Bihar at an estimated cost of approximately $1.1 billion. Source: IB Times


The Delhi government announced a start-up incubation policy and distributed $225,000 each to six higher educational institutions for promoting entrepreneurship. Source: Business Standard

In Detail: Press Release



The National Council of Applied Economic Research (NCAER) ‘State Investment Potential Index’ Report ranks Gujarat as the state with most investment potential, best governance, and greatest political stability. Source: Business Standard

In Detail: NCAER State Investment Potential Index N-SIPI 2016

State-run Gujarat Narmada Valley Fertilizers and Chemicals Limited (GNFC) will form a joint venture (JV) with Belgium-based EcoPhos to establish a chemical project with an investment of $79 million at Dahej in Gujarat. EcoPhos will own 85 percent of the venture. Source: Business Standard


 Haryana is the eighth state to join the center’s scheme to revive debt-crippled state power distribution companies (discoms). The state estimates it will save $2.11 billion in the next three years by converting discom debt into state bonds at lower interest rates. Source: Economic Times

The Haryana government claims to have signed 357 memorandums of understanding (MoUs) for investments worth $87.1 billion and with the potential to create 500,000 jobs during the two day “Happening Haryana Global Investors Summit” in Gurgaon. Source: Economic Times

The Haryana government released its solar power policy, which aims to add 4,000 megawatt (MW) of solar power by 2022. The policy grants the sector industry status and includes incentives such as cross-subsidy charges, electricity duty exemption, and banking facility, among others. Source: Business Standard




Ride-hailing app Uber has launched its first engineering center in India in Bengaluru, its first ever in Asia. Source: Economic Times

Hero Future Energies and ReNew Power emerged as big winners in a mega tender for 1,200 MW of solar power capacity floated by the Karnataka government. Both were awarded 180 MW. Source: Economic Times


 The Madhya Pradesh government cut the power tariff to 12 percent from 15 percent on use of 200 units or more. Rates for the industrial sector, excluding the cement and mining industry, were reduced to 9 percent. Source: Times of India



Maharashtra chief minister Devendra Fadnavis unveiled the state’s new tourism policy, which promises an investment of $4.5 billion in providing basic amenities across the state. The state will provide exemptions in luxury, entertainment tax, and electricity duty and also give rebates on value-added tax (VAT). Source: Economic Times


Rajasthan chief minister Vasundhara Raje presented the state budget for 2016-17 with expenditure of $26.35 billion and fiscal deficit of 5.62 percent. Source: Business Standard



Desiya Murpokku Dravida Kazhagam (DMDK) president, Vijayakant, announced that his party will face the Assembly elections alone, rejecting repeated invitations from the DMK for a poll tie-up. The move means that the state will likely see a six-cornered contest in upcoming elections Source: The Hindu


Germany will partner with India to develop Coimbatore in Tamil Nadu as a ‘smart city’ in addition to two other cities in India. Source: Hindu Business Line

In Detail: Press Release

Telangana’s finance minister Etela Rajender presented the state budget with a proposed expenditure of almost $20 billion for the financial year 2016-17. This includes a plan expenditure of $10 billion and non-plan outlay of $9.37 billion. Source: Business Standard

In Detail: Telangana Budget 2016-17

The ruling Telangana Rashtra Samithi (TRS) swept recent civic body elections, winning 44 of 58 seats in Warangal, the state’s second largest city. Twelve legislators from the opposition Telugu Desam Party (TDP) also switched over to TRS, leaving the TDP with only 3 seats in the state’s legislative assembly. Source: Economic Times, Economic Times


The Comptroller and Auditor General of India, in its latest audit report, announced that the accumulated loss suffered by power distribution companies in Uttar Pradesh has increased from $5 billion in 2011-12 to $9 billion in 2013-14. Source: Economic Times

Uttar Pradesh became the first state to issue bonds, worth $550 million, to help cover the debt of its power distribution company (discom). The move was a major victory for the government’s ambitious revival plan for ailing state power distribution companies. Source: Economic Times


Nothing critical to report.

Upcoming State Elections

Results for all 5 state elections will be available April 19.

Poll Dates:

Assam – April 4 and April 11

Kerala – May 16

Tamil Nadu – May 16

Puducherry – May 16

West Bengal – April 4, 11, 17, 21, 25, 30, and May 5


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