Update on India’s States: May 18, 2017

Andhra signs agreement with Iowa on agriculture and life science; Suzuki Motors ramps its investment in Gujarat to over $2 billion; India’s lowest solar tariff at 3 cents/unit in Rajasthan; underground stretch of Chennai Metro Rail starts operations; new Uttar Pradesh government cancels major long-term PPAs by previous administration

Center- State relations

At the most recent meeting of the Northern Zonal Council (NZC), northern states agreed to tackle the problem of air pollution as per guidance of the central pollution control board. Source: DNA India

Goods and Services Tax Tracker: Fourteen states — Telangana, Bihar, Rajasthan, Jharkhand, Chhattisgarh, Uttarakhand, Madhya Pradesh, Haryana, Goa, Assam, Uttar Pradesh, Gujarat, Andhra Pradesh, Arunachal Pradesh — 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.

A joint venture between two Singapore-based organizations, Ascendas-Singbridge and Sembcorp Development, will work with Andhra Pradesh’s Amaravati Development Corporation to develop its financial district. Source: The Straits Times

Andhra Pradesh signed a memorandum of understanding (MoU) with Iowa to promote research and development in the fields of science, agriculture and life sciences. Source: Economic Times

Andhra Pradesh IT Minister Nara Lokesh signed a deal with HCL Technologies for setting up of $77.7 million IT research facility in Vijayawada. This project is expected to train and employ over 5,000 residents. Source: Economic Times

Andhra Pradesh and Telangana have entered into an inter-state reciprocal agreement over transportation system. This will enable their transport departments to have counter-signature permits for goods and transport vehicles as well as to resolve pending issues post-bifurcation like sharing of APSRTC assets, inter-state taxes and employees. Source: Times of India

Bihar’s chief minister Nitish Kumar inaugurated various initiatives worth $413. 8 million for the energy department, which include construction of grid and power sub-station laying of new 33 kilovolt (KV), 11 KV and low tension lines, sub-divisional control room with customer facilitation centre, and rural electrification. Source: Business Standard

Energy Efficiency Services Ltd (EESL) launched its LED tube light and five-star rated energy efficient fans program under the UJALA initiative in Bihar. Consumers will be able to buy five 20 watt LED tube lights at $3.57 each and two five star rated energy efficient fans at $17.80 each.

Source: Financial Express

Starting May 10, Delhi Metro fares have been increased on average from $0.03 to $0.31, with the Delhi Metro Rail Corporation (DMRC) Board accepting the recommendation of the fare fixation committee. Source: Hindu Business Line

Gujarat’s legislative assembly unanimously ratified and passed the newly introduced State Goods and Services Tax (GST) bill. Source: Hindu Business Line

With private power producers reducing supply to the state, Gujarat Urja Vikas Nigam Limited (GUVNL) has turned to the open market to procure electricity to deal with the shortage. Source: Times of India

Suzuki Motor Corporation (SMC) will invest an additional $878.58 million in India to expand its production facility in Gujarat by the early 2020s. The proposed investment is over and above the $1.32 billion that SMC had originally promised to invest in the Suzuki Motors Gujarat subsidiary. Source: Hindustan Times

The Gujarat Government decided to provide a four percent dearness allowance to a combined 820,000 state government employees, panchayats and pensioners from July 1, 2016 adding a financial burden of $145 million on state exchequer. Source: Business Standard

Japanese electronics corporation Panasonic is expected to set up its refrigerator factory in Haryana’s Jhajjar district. Japan has also has sought Haryana’s cooperation in setting up Japan-India Institute for manufacturing in the state to impart skill training to youth in the manufacturing sector. Source: Business Standard, Business Standard

The Haryana government enhanced the upper financial limit of work order for skilled and unskilled works to be reserved for cooperative labor and construction societies from $466 to $777. Source: Business Standard

Under a new initiative in Haryana, the government will collect detailed data of every resident , and allot every house with a smart house identification number, by visiting every single house across the state. Source: India Today

As part of its startup initiative, Karnataka government has awarded $1.5 million in grants to 26 biotechnology startups. The government disbursed the grants to the startups under its “Idea to Proof of Concept (Idea2POC) Grant Initiative.” Source: VC Circle

Nothing critical to report this week

All commercial and cargo vehicles in Maharashtra with a yellow number plate will be restricted to a speed limit of 80 kilometers per hour. The speed limit ruling extends to all black and yellow taxis, app-based cabs, small capacity tempos, cargo vehicles and pickup vans with a gross weight less than 3,500 kilograms . The rules imposed by the state government also mandate the installation of “speed governors,” a device that limits the top speed of a vehicle. Source: NDTV

Maharashtra’s state cabinet approved the state Goods and Services Tax (SGST) bill. Source: DNA India

In addition to the UJALA initiative, the Maharashtra government has decided to provide LED bulbs to consumers at subsidized rates and to replace all conventional bulbs in government establishments with LED fittings. Source: Economic Times

India’s solar power tariff hit a new low of $0.0379 per unit during the auction of a 500 megawatt (MW) capacity at Bhadla park in Rajasthan. Acme Solar Holdings Pvt. Ltd and SBG Cleantech placed winning bids of $0.0379 per kilo-watt hour (kWh) and $0.038 per kWh, respectively, to win contracts for the solar park being developed by Infrastructure Leasing and Financial Services Ltd. Source: Livemint

The Rajasthan state cabinet has decided to amend prison rules to include remuneration days in the parole tenure, in order to provide relief to prisoners who have displayed good conduct. Source: Financial Express

According to the Reserve Bank of India (RBI), Tamil Nadu tops the list of southern States in revenue deficit. For the year 2016-17, the projected revenue deficit of Tamil Nadu was $2.46 billion. Source: The Hindu In Detail: State Finances: A study of budgets of 2016-17

Operations of the first underground stretch of the Chennai Metro Rail was inaugurated by Union Minister Venkaiah Naidu with a contribution of $1.68 billion from the center under various central initiatives. Source: The Hindu

The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has signed a MoU with the Rural Electrification Corporation (REC) for financial assistance of $13.2 billion to undertake various infrastructure development projects in the State. Source: The Hindu

Telangana announced its “Rural Technology Policy,” which includes developing one rural technology center in each district, providing jobs to at least 2,500 people through the centres and training 10,000 rural youth through TASK to prepare them to be job-ready for the next three years. The government also announced incentives for IT companies which would come forward to establish companies in the villages, including 50 percent investment subsidy on fixed capital investments, with a maximum limit of $62,215 per unit. Source: Hans India In Detail: Rural Technology Policy 2016

IT firm Cognizant has requested time from the Telangana LaboUr Department to respond to the issue of sudden resignations by some of the employees of the company. The Forum for IT Employees (FITE) had filed a petition on layoffs by the IT giant, alleging that Cognizant was illegally terminating thousands of employees by forcing them to resign. Source: Economic Times

Telangana became the first state for the rollout of the pilot e-Sanad project, an initiative by the Ministry of External Affairs (MEA) for online attestation of documents. The initiative under the Digital India program aims to provide faceless, cashless, contactless and paperless document attestation and apostle services. Source: Hans India

The center has agreed to provide $124 million to Telangana towards supplying safe drinking water in fluoride-affected habitations in the state, 50 percent of the proposed funds the state had requested. Source: Economic Times

According to Telangana Social Development Report (TSDR) 2017, 50.6 percent of the credit requirements are being catered to by money lenders in Telangana. Source: Hindu Business Line

Uttar Pradesh government has cancelled the long-term power purchase agreements (PPAs) for 3,800 MW due to the cost of power under these pacts being higher than the spot market prices. The previous Samajwadi Party government signed the 15-year contracts with Jindal Power, JP-Nigeri, Lanco, Adani Power, GMR, and JSW. Source: Business Standard

A joint working group of the Uttar Pradesh government and NITI Aayog, India’s new planning body, has been formed to create a development roadmap for the state. Source: Economic Times

The state government has started a special fortnightly drive for cleanliness “Parichhannata Abhiyan” that will be executed in all 125 municipalities across the state. Source: Times of India

Best of the Rest


The Jharkhand government and Oracle signed a MoU intended to improve citizen services and to make the state an attractive destination for start-ups. Oracle will offer its support to the state through its vast portfolio of technology solutions, including Oracle Cloud. Source: Hindu Business Line


The Punjab government has approved land allotments for 14 IT and ITeS companies in the Mohali IT city, paving the way for an investment of over $116.6 million and expected creation of nearly 1,500 direct jobs. Source: Times of India


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