Update on India’s States: October 26, 2016

A Gujarat delegation signs $5 billion in investment deals with Chinese investors; Haryana opens commercial road transport to private companies; Maharashtra revises procurement rules to give start-ups an edge and issues draft rules to regulate Uber and Ola; Tamil Nadu may be joining UDAY — but Jayalithaa still has to sign on; and more.

Center-State relations

Nothing critical to report this week.

The Andhra Pradesh government will issue an ordinance amending the AP Infrastructure Development Enabling Act to allow the administration to take over the Infrastructure Development Authority (IDA), currently headed by a member of the civil service. The government has been frustrated by the need receive IDA’s approval before signing off on development projects. Source: Times of India

Morocco’s state-owned Office Cherifien de Phosphate and the Indian firm KRIBHCO have announced the construction of a new $230 million fertilizer plant in Krishnapatnam. Source: Business Standard

The Monetary Authority of Singapore (MAS) and the Andhra Pradesh government signed an agreement to promote innovation in financial services. MAS and the state government will explore joint innovation projects on technologies such as digital payments and collaborate on the development of educational programs on financial technology. Source: Financial Express

Nothing critical to report this week.

Chief Minister Arvind Kejriwal announced that the neighborhoods under the jurisdiction of the New Delhi Municipal Council  will be retroactively included in his government’s free water program. Payments by residents in the newly covered area will be refunded beginning on the date the program started in other parts of Delhi. Source: Indian Express

A Gujarat government delegation signed $5 billion in agreements with Chinese companies during a trip to China to promote the upcoming Vibrant Gujarat summit. The delegation, led by Sanjay Prasad, principal secretary of the Gujarat Agriculture and Cooperation Department, visited Beijing, Shanghai, Guangzhou, and Shenzhen. Source: Indian Express

The central government has approved a $35 million dredging project to facilitate ferry services between Gogha and Dahej in the Gulf of Cambey, Gujarat. Source: Business Standard

Haryana’s cabinet approved a draft notification amending the Haryana Motor Vehicles Rules to allow private companies to offer road transport in the state. Under the current rules, only the state-owned Haryana Roadways can legally obtain a license to provide transportation services in the state. Source: The Hindu

Nothing critical to report this week.

Chief Minister Shivraj Singh Chouhan said participants in the fifth Global Investors Summit at Indore had expressed interest in investing as much as $85 billion in Madhya Pradesh. The state did not sign any agreements during the event, however. Source: Business Standard

Railway Minister Suresh Prabhu laid the foundation stone of two new projects: laying a broad gauge track connecting Rewa-Sidhi-Singrauli districts and a new railway station at Sidhi. Source: India.com

The Maharashtra government announced passage of two controversial laws dealing with cooperative banks. The state used a constitutional provision to bypass the upper house of the legislature, the Legislative Council, which had twice refused to vote on the bills. The new laws allow the government to bar directors of mismanaged district cooperative banks from running for re-election and permit the state government to appoint two nominees to each cooperative. Source: Indian Express

Maharashtra released new procurement rules that give registered start-ups a better chance to win public contracts. According to the revised policy measures, government agencies can waive criteria specifying a minimum annual turnover and experience if a registered start-up bids for a contract for public supplies. The revised policy also makes the Swiss challenge model of procurement standard. Source: Indian Express

Maharashtra has released the draft Maharashtra City Taxi Rules 2016, which for the first time will regulate app-based taxi services as taxi operators. Aggregators like Uber and Ola will have to register and be licensed in order to receive a permit to operate taxis. Source: Business Standard In Detail: Draft Rules

The Maharashtra government will make gram panchayats (village councils) responsible for overseeing electricity connections in their area. Panchayat employees will be paid 13 cents per consumer to read meters, restore broken connections, and collect payments. Source: NDTV

Rajasthan’s urban development and housing department has released proposed rules under the Rajasthan Real Estate (Regulation and Development) Act 2016. The rules include a provision for a real estate regulatory authority and contain penalties for promoters who delay housing projects. Source: Times of India

Tamil Nadu has agreed in principle to join the center’s Ujwal DISCOM Assurance Yojana (UDAY) discom bailout scheme, which the state has long criticized. The announcement came after Tamil Nadu power minister P Thangamani met with Piyush Goyal, union minister of state for Power, Coal, New & Renewable Energy and Mines (Independent Charge). Source: Business Standard

Three assembly constituencies will hold elections on November 19, with votes counted on November 22. Polls were delayed in these constituencies because the Election Commission felt that free and fair elections could not be held in May. Source: Hindu Business Line

Telangana has signed a memorandum of understanding (MoU) with Illinois governing collaboration and interaction between the two states. The agreement was signed in Chicago by Principal Secretary (Industries and Commerce) Arvind Kumar on behalf of Telangana and Secretary of Innovation & Technology and Chief Information Officer Hardik Bhatt on behalf of Illinois. Source: The Hindu

The Telangana government has announced that female state employees will receive up to 90 days of child care leave from the time of their child’s birth to when the child turns 18. Source: Hindu Business Line

The ruling Samajwadi Party was on the edge of a split in the run-up to state elections after general secretary and Rajya Sabha member of parliament  Ram Gopal Yadav was expelled from the party for six years. The expulsion came just hours after Chief Minister Akhilesh Yadav once again fired his uncle Shivpal Yadav and three other senior ministers. Source: The Hindu

The Election Commission set November 19 as the date for by-polls for two Lok Sabha constituencies — Tamluk in East Midanapore and Cooch Behar — and one assembly constituency in Monteswar of Burdwan district. The ruling Trinamool Congress held all three seats before they fell vacant. Source: Indian Express


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