Update on India’s States: May 10, 2017

The AIIB makes its first investment in India; Jharkhand makes it free to register property in a woman’s name; state power ministers support pooling of all types of power generation; the Madhya Pradesh fiscal year will start January 1; and more.

Center-State relations

State power ministers agreed in principal to a central proposal to pool generation costs for all sources of power and to setting an average cost to be paid by state distribution companies. The central National Thermal Power Corporation, which submitted the proposal, argued that it will reduce costs to states purchasing power from central generation sources. Source: Energy Infra Post

The Inland Waterways Authority of India has begun cargo transportation along multiple national waterways, with a cement consignment traveling from West Bengal to Bihar via the Rupnarayan and Ganges Rivers. Source: Economic Times

Goods and Services Tax Tracker: Ten states — Telangana, Bihar, Rajasthan, Jharkhand, Chhattisgarh, Uttarakhand, Madhya Pradesh, Haryana, Goa, and Gujarat — have passed the model version of the Goods and Services Tax (GST). All 29 states must pass their own version of the law for the tax to become effective nation-wide.

Andhra Pradesh’s main distribution company is pushing wind power producers to renegotiate power purchase agreements (PPAs) after tariffs dropped sharply to $0.053 per kilowatt hour (kWh) in national auctions. The state now wants to use the auction rate as the benchmark for new PPAs. Source: Economic Times

The Asian Infrastructure Investment Bank (AIIB) approved a $160 million loan for a power grid improvement project in Andhra Pradesh, the first by the bank for an Indian project. India is the second largest shareholder in the AIIB after China. Work under the project will be co-financed by the World Bank. Source: Hindu Business Line

Bihar’s state-owned power distribution companies signed a memorandum of understanding (MoU) with the central Power Trading Corporation to purchase 200 megawatts (MW) of wind energy from a proposed wind energy production unit to be built by the central government in either Gujarat or Tamil Nadu. Source: Times of India

Nothing critical to report this week.

Gujarat’s four power distribution companies (discoms) topped the center’s discom ranking for the fifth year in a row. Rankings are based on the discoms’ ability to cut transmission and commercial losses, reduce the cost of power, and get consumers to pay for what they receive. Source: Business Standard

Gujarat has dropped a proposal for setting up a 4,000 MW coal-based power plant. The state currently has surplus generation capacity and wants to focus on developing renewable power. Source: Business Standard

The state government has notified the third and final set of rules and regulations under the Real Estate (Regulation and Development) Act 2016. The regulations requires that developers register with the state regulatory authority and stipulates fines of up to 5 percent of total project cost for non-compliance with the terms of the Act. Source: Livemint

Haryana is offering a second month-long amnesty for consumers with defective or altered electricity meters.  Residents will have until the end of the month to report any issues, following which the state will launch a special drive to prevent electricity theft. Source: Economic Times

Nothing critical to report this week.

Madhya Pradesh became the first state to move the start of its financial year to January 1 from  April 1. The current fiscal year will thus end prematurely on December 31. Prime Minister Narendra Modi had urged states to make the shift during the meeting of NITI Aayog’s governing council. Source: Economic Times

The Madhya Pradesh Assembly passed a resolution giving “living entity” status to the Narmada river. The resolution lays the groundwork for legislation making it a crime to harm the river. Source: Zee News

Indore and Bhopal were ranked as the two cleanest cities in India in a new survey from the Ministry of Urban Development. The survey looked at whether urban areas were free from open defecation and had access to door-to-door waste collection and the processing and disposal of solid waste. Source: First Post, Indian Express

Maharashtra will partner with the World Health Organisation (WHO) to eradicate measles and will begin a vaccination drive in March 2018. The drive will target children between 9 months and 15 years old. Source: Financial Express

The Central Water Commission granted initial clearance to the $4.65 billion Eastern Rajasthan Canal Project, which will use the waters of the Chambal River to irrigate 13 districts in Rajasthan. Source: Financial Express

Chief Minister Edappadi K. Palaniswami announced that the state government will take direct control of operations in all sand quarries in the state, putting an end to the role presently played by private players. Palaniswami urged builders to switch to manufactured sand in future construction, as the state might not have enough natural sand to meet its needs in two or three years. Source: The Hindu

Chennai has submitted plans to develop two waste-to-energy plants, at a cost of $373 million, to generate 58 MW of power by processing 5,500 tons of municipal solid waste per day. Source: The Hindu

The Telangana State Innovation Cell began operations on May 3. The cell is designed to nurture and enable the early stage start-up ecosystem and will act as the single administrator for all incentives for start-ups and incubators under Telangana’s innovation policy. Source: The Hindu

Uttar Pradesh has committed to purchasing 500 MW of electricity generation from the first round of wind capacity auctions conducted in February by the Ministry of New and Renewable Energy. The auctions resulted in a tariff of 5.4 cents perkWh. Source: Hindu Business Line

Nothing critical to report this week.

Best of the Rest


Chief Minister Raghubar Das announced that registration of real estate in a woman’s name will be virtually tax-free. Source: Avenue mail


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