Update on India’s States: October 5, 2016

West Bengal and Tamil Nadu now opposing certain provisions of the GST, Madhya Pradesh introduces new rooftop solar power policy, Rajasthan hikes its fees for solar power inspection, Andhra Pradesh and Telangana get extensions on tax incentives from the center.

Center–State relations

West Bengal and Tamil Nadu are now opposing a proposal to allow the center to take administrative control over all 1.1 million payers of service taxes, a provision they had earlier agreed to. Source: Livemint

The center has approved $250 million for highway projects spread across eight states totaling 282 miles. Five of the eight projects will be executed under the engineering, procurement, and construction model. Source: Economic Times


The central board of direct taxes has extended tax incentives for seven districts in Andhra in order to boost industrial activity. These include eligibility for an additional 15 percent of higher depreciation and 15 percent of the investment allowance on the cost of the plant and machinery. Source: Financial Express

The central steering committee on greenfield airports gave in-principle approval to create three new airports in Andhra Pradesh. One of the three will be an international airport estimated to cost $330 million, while the other two will be domestic no-frills airports estimated to cost $13 million each. Source: Economic Times


Bihar has passed the second version of the Bihar Prohibition and Excise Act 2016. The new version has even stricter provisions, including increased powers for the police and excise department, and a presumption of guilt for every adult in a family in the case of consumption, manufacturing, sale or distribution of alcohol on family property. Source: Economic Times

Gayatri Projects, an infrastructure development company, won a $139 million contract to four-lane National Highway 82 in Bihar. The work is funded by the Japan International Cooperation Agency. Source: RTN.Asia


Nothing critical to report this week.


The center has approved a $38 million project to redevelop the Gandhinagar railway station. A special purpose vehicle, the Gandhinagar Railway Station Integrated Development Company Limited, has been constituted to implement the project, with representation from the state government, the central Ministry of Railways, and the Indian Railways Stations Development Corporation. Source: Economic Times

Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) is partnering with Belgian firm Ecophos SA to set up a di-calcium phosphate plant at Dahej in Gujarat at an estimated cost of $79 million. Source: Economic Times


Haryana has introduced a public procurement policy directed at supporting micro, small, and medium enterprises, which includes exempting such businesses from the tender fee and earnest money deposit. Source: Business Standard

The Haryana government has issued a notice prohibiting public employees in the Agriculture and Farmers’ Welfare Department from going on strike for a period of six months under the provisions of the Essential Services Maintenance Act. Source: Times of India


The Supreme Court has asked Karnataka to release 6000 cubic feet per second (cusecs) of water daily to Tamil Nadu from October 1-6 and 2000 cusecs of water from October 7-18. Source: Hindu Business Line

The National Highways Authority of India has awarded Karnataka two development contracts worth $587 million. The projects include  making the Hubli-Hospet section of NH 63 four lanes and expanding the Hospet-Bellary-Karnataka/AP Border section to four or six lanes. Source: Times of India

The tourism department of the Karnataka government will provide assistance totaling $300,000 to eight technology-based start-ups to help them launch their ideas to boost the state’s tourism sector. Source: Economic Times


Following Chief Minister Shivraj Singh Chouhan’s visit to the United Kingdom, Medicity, a consortium of pharmaceutical and healthcare companies, will lead a delegation from the UK to Madhya Pradesh during October. Source: Hindu Business Line

The Madhya Pradesh government has approved a rooftop solar power policy that provides incentives to consumers who install small solar power systems. For systems manufactured in India, the state will provide residential consumers a 30 percent subsidy and government buildings a 45-50 percent subsidy. Surplus electricity will be adjusted against consumption. Source: Clean Technica


The European Business and Technology Center has signed a two-year Memorandum of Understanding (MoU) with the Pune Smart City Development Corporation to be the city’s knowledge and technical cooperation partner. Source: Economic Times

The Maharashtra government has produced a draft of the Maharashtra Real Estate (Regulation and Development) (General) Rules 2016 that allows for the creation of a real estate regulatory authority and a housing tribunal. The rules make it mandatory for a project promoter to make all disclosures available online and file separate applications for construction of each group of buildings. 70 percent of the cost of a real estate project will have to be deposited with a bank to ensure the promoter can cover land and construction costs. Source: Business Standard In detail: Maharashtra Real Estate Rules 2016

The Maharashtra Cabinet has approved two metro lines in the Mumbai Metro corridor. The Cabinet also approved detailed project reports of the Mumbai Metro 2B corridor (14.6 miles) and Metro 4 corridor (20 miles). Source: Economic Times In detail: Metro 2 corridor, Metro 4 corridor

The Maratha community has been holding silent protest marches around the state urging the government to provide the community with a reservation in jobs and education. Source: First Post

The center has approved an assistance package of $190 million for drought-affected areas in Maharashtra. Source: Indian Express


The Rajasthan government has formed a task force to oversee execution of the chief minister’s Power Reform Campaign. Source: Business Standard

The Rajasthan state energy department has increased its fees for inspection and testing of the electrical installations required for solar power by up to three times the previous amount. Source: Times of India


Nothing critical to report this week.


The center has extended tax incentives to nine backward districts in Telangana. The nine districts will be eligible for tax incentives, including additional depreciation and investment allowance. Source: Hindu Business Line

The central steering committee on greenfield airports has recommended a site clearance to set up a second greenfield airport in Telangana. Source: Economic Times


Uttar Pradesh chief minister Akhilesh Yadav expanded his cabinet for the eighth time since he assumed office in March 2012, adding 10 new ministers. Source: Indian Express


The Gorkha community led a 12-hour strike in Darjeeling demanding details of how much money is being spent for development in the hill areas. The chief minister issued a notice of mandatory attendance at government offices during the strike. Source: Economic Times

The West Bengal government signed an MoU to provide land to the Burn Standard Company to build a monorail from Budge Budge in the southwest corner of the city to Ruby Hospital in the southeast. Source: Financial Express

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