Update on India’s States: March 24, 2016


Andhra Pradesh and Cisco launch India’s first state-wide broadband service; India and the World Bank sign a $35 million loan agreement for Madhya Pradesh Access to Responsive Services Project; Gujarat asks e-commerce retailers to charge entry tax on goods brought in from other states.

Center-State relations

The Lok Sabha passed the Real Estate (Regulation and Development) Bill, 2016. The bill makes it mandatory for developers to set aside 70 percent of the sales proceeds from a project in an escrow account and receive compulsory approvals before the project is launched. States can choose between adopting the bill’s provisions or passing their own, stricter, laws. Source: Business Standard

In Detail: The Real Estate (Regulation and Development) Bill, 2016

The Coal Ministry has allotted four captive coal mines to provide fuel for state power generation utilities in Tamil Nadu, Maharashtra, Andhra Pradesh, and Haryana. Source: Economic Times

Cisco and Andhra Pradesh will set up India’s first state-wide broadband network – ‘AP FiberNet.’ Cisco will also set up an Internet of Everything (IoE) Innovation center in Visakhapatnam, Andhra Pradesh. The center is meant to drive regional innovation, to enable partners and start-ups to find solutions around IoE, and to engage in rapid prototyping.’ Source: Business Standard

In Detail: Press Release

Nothing critical to report.

Delhi electricity bills will go down by up to six percent starting March 15 as local power distribution companies (discoms) lost the power to levy fuel surcharges. Discoms have not been allowed to raise electricity prices since 2014. Source: Economic Times


A U.S. delegation led by Assistant Secretary of State for Economic and Business Affairs, Charles Rivkin, called on Gujarat chief minister Anandiben Patel, as part of an “American Innovation Roadshow.” The team also met with business representatives in Ahmedabad to discuss business ties and promotion of clean energy technology. Source: The Hindu

The Gujarat government has asked e-commerce retailers to charge an entry tax consisting of the difference in value added tax between Gujarat and the state from which a product was supplied. The legislature is preparing a bill to force online retailers to comply. Source: Times of India


Haryana power distribution companies will allow self-certification of electrical installations up to 33 kilovolts. The move is meant to promote ease of doing business by accelerating the process of getting an electricity connection. Source: Business Standard



The Karnataka budget for 2016-17 has increased taxes on petrol and diesel, increased excise duty on Indian Made Foreign Liquor (IMFL), increased value-added tax on aerated non-alcoholic beverages, and hiked the motor vehicle tax. Chief Minister Siddaramaiah presented the budget, which includes a $48 million deficit, and announced that the state’s total receipts are estimated to be $25 billion during 2016-17. Source:  Hindu Business Line

The state government has created a new Anti-Corruption Bureau, which is headed by a police officer who reports to the government. The new system puts the current Siddaramaiah government in direct confrontation with supporters of the Lokayukta institution to investigate corruption. Source: Economic Times

India and the World Bank signed a $35 million loan agreement for the Madhya Pradesh Citizen Access to Responsive Services Project, which aims to improve access and quality of public services in the state through implementation of the Public Service Delivery Guarantee Act. Source: Hindu Business Line

In Detail: Press Release

Madhya Pradesh’s tax revenues for 2015-16 were $5.5 billion, well under the $10 billion projected in the previous budget. Source: Economic Times


The 2016-17 Maharashtra Budget projects revenues of $33.17 billion against expenditure of $33.72 billion. The budget proposed $3.8 billion for the farm sector, although the total capital expenditure on agriculture and allied activities for 2016-17 is expected to be $698 million, 10 percent less than the revised estimates for 2015-16. Source: Business Standard, Indian Express

In Detail: Maharashtra Budget 2016-17 Part 1 and Part 2

According to the Maharashtra Economic Survey for 2015-16, the real Gross State Domestic Product (GSDP) at constant (2011-12) market prices will be $258 billion, up eight percent from 2014-15. The Economic Survey also found that work has begun on only 3 percent of manufacturing projects approved in the last two years. Source: Business Standard, Indian Express

In Detail: Maharashtra Economic Survey 2016-17

IndiaBanners_CogitAsia_states_RajasthanRajasthan has issued $4.28 billion in bonds under a central scheme aimed at reviving power distribution companies (discoms). The bonds were issued to 26 banks at an interest rate of 8.39 percent. Source: Economic Times


Nothing critical to report.

The State Gross Domestic Product of Telangana has grown 9.2 percent at constant prices during 2015-16, reaching $71 billion. Source: Hindu Business Line

Telangana has added $7.5 billion in debt since its formation in 2014 and now owes $20 billion in total. Source: Deccan Chronicle


Nothing critical to report. IndiaBanners_CogitAsia_states_WestBengal

Congress announced its candidates for 43 seats in the upcoming West Bengal assembly polls and indicated it would contest around 90 of 294 total constituencies as part of its “strategic alliance” with the CPI(M)-led Left Front. Source: Economic Times

Upcoming State Elections

Results for all 5 state elections will be available May 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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