Update on India’s States: September 20, 2017

Haryana, Goa, and Bihar announce IT and startup policies, while Karnataka releases an electric vehicle policy; Rajasthan becomes the latest state to announce a loan waiver; Assam will require government employees to care for parents and disabled siblings; and more.

Center-State relations

Nothing critical to report this week.


Nothing critical to report this week.


Chief Minister Nitish Kumar announced a set of incentives for firms in the information technology (IT), IT enabled services, and electronics manufacturing sectors, including exemption from stamp duty, registration fees, and land conversion fees; tax incentives; and employment cost and skill development subsidies for scheduled caste/tribe and female employees. Source: Business World, Times of India

Bihar has signed a memorandum of understanding (MOU) with the World Bank for a $235 million loan for the construction of 1,500 miles of rural roads. The project may also receive funding from the New Development Bank, which is funded by the BRICS nations. Source: Times of India

The National Green Tribunal declined to lift the current ban on operation of diesel vehicles more than a decade old in the Delhi area. The panel said the Ministry of Heavy Industries and Public Enterprises has failed to prove that the use of 10-year-old diesel vehicles will not be harmful to the health of people. Source: Times of India

Gujarat received the highest share (22.7 percent) of private corporate investment in financial year 2016-17, according to data published by the Reserve Bank of India (RBI). Maharashtra came second with 8.6 percent. Source: Business Standard In Detail: RBI Report

Gujarat signed an MOU with Japan’s Ministry of Economy, Trade, and Industry on the ‘Japan-India special programme for Make in India.’ The two sides will work together on infrastructure development in the Mandal Bechraj-Khoraj region. Source: India Today

The value of bad loans on the books of Gujarat state banks has increased 2.5 times since June 2014. At the end of June 2017, gross Non-Performing Assets of all the banks in the state crossed the $5.4 billion. Source: Indian Express

The Haryana government held a major IT event during which it four released new IT-related policies and launched multiple development centers for incubating IT-related technology, including an 84-seat start-up warehouse in Gurugram with a mobile application development center. Source: eGov In detail: IT & ESDM Policy 2017, Startup Policy 2017, Cyber Security Policy 2017, Communication & Connectivity Infrastructure Policy 2017

The Haryana government set a goal of installing 100,000 new solar water pumps for irrigation purposes, including 25,000 in the next year. Source: Economic Times

The Karnataka cabinet approved the new Karnataka Electric Vehicle & Energy Storage Policy 2017. The policy suggests that the state government amend building codes to require vehicle charging stations in all high-rise buildings and create a special purpose vehicle to build stations around Bangalore. Source: Hindu Business Line

The Karnataka Department of Information Technology and Biotechnology signed an MOU with the Embassy of Finland to create the Karnataka–Finland Innovation Corridor. The Corridor offers a virtual platform facilitating the exchange of information and expertise in the fields of science, research, innovation and skill development. Source: Hindu Business Line

Nothing critical to report this week.

Following recent building collapses which killed 50 people, the state government has announced a reconstruction and redevelopment policy for dilapidated but inhabited buildings in the Mumbai area. The new policy will allow developers to redevelop the buildings with a 50 percent floor space index incentive as long as they provide current tenants with flats of equivalent size when the work is done. Source: Money control

Maharashtra has begun a second round of intensive door-to-door screening to diagnose leprosy in 22 districts of the state. The campaign will screen over 54 million people between September 6 and 20. Source: Indian Express

Maharashtra will be the first state to form a conciliation committee under the Real Estate (Regulation and Development) Act (RERA). The committee will include representatives of builders and consumer groups and will act as a mediator between parties. Disputants will be able to lodge a complaint with the state regulator only if arbitration fails. Source: Economic Times

Following a 13-day protest, the state government announced it would waive all farm loans up to $777 per farmer. The total cost of the waiver may be $7.8 billion. Source: Business Standard

Rajasthan has launched an Agriculture Produce Deposit Loan Scheme that will allow farmers to access short-term, low-interest loans using their crops as collateral. The loans are meant to allow farmers to wait to sell their crops until prices improve. The loan term will be 90 days; small farmers can borrow 70 percent of the value of their crop up to $2,300. Source: Business Standard


Tamil Nadu Assembly Speaker P Dhanapal disqualified 18 All India Anna Dravida Munnetra Kazhagam (AIADMK) Assembly members who support sidelined party deputy general secretary TTV Dhinakaran. The MLAs were disqualified under Schedule 10 of the Indian Constitution, which covers anti-defection laws. Source: Times of India 

Tamil Nadu launched the centrally-funded Antara birth control program in the state. Women between the ages of 18 and 45 years will be able to receive contraceptive injections once every three months at all state-run primary health centres and hospitals. Source: Times of India


The Power Finance Corporation has agreed to extend $623.6 million in financial assistance to the fifth phase of the 4,000 megawatt Yadadri Ultra Mega Thermal Power Plant. The plant is now completely funded. Source: Hindu Business Line

Flagship Telangana incubator T-Hub has set up a Smart Mobility and Transportation Cluster that will focus on enhancing mobility while reducing congestion, air pollution, and road traffic incidents. The cluster will help stakeholders build, design, test and work on Autonomous Vehicle (AV) technology, electric vehicles, and shared mobility solutions. T-Hub will also partner with United Technologies Corporation to build an advanced emerging technologies laboratory. Source: Hindu Business Line, Economic Times

Telangana’s energy distribution companies are collaborating to install pre-paid energy meters in state and local government offices as well as some commercial establishments. The move is aimed at ensuring better compliance with bill payments and to avoid defaults by government agencies. Source: Hindu Business Line

Beginning in November, over 5,000 priests and temple employees in Telangana will be paid according to the state government pay scale. Source: Indian Express


The Uttar Pradesh cabinet approved a proposal to establish a Medical Supply Corporation that will be responsible for purchasing all medicines and medical devices for public hospitals. The state has allocated $189 million for medicine and equipment in the present financial year. Source: Business Standard

The Uttar Pradesh government has initiated its crop loan waiver, with plans to waive loans worth $1.14 billion in the first phase. The debts of 1.2 million small and marginal farmers will be waived in the first phase. Source: Livemint

As part of its attempts to attract investment, the Uttar Pradesh government has appointed Ernst & Young as its investment promotion consultants. The firm will help UP leverage its new industrial policy and prepare a roadmap for attracting investors from India and overseas. Source: Livemint

The West Bengal finance department has issued directives to all 32 government departments asking them to return unspent funds and to give explanations as to why funds allotted to them were not spent. Source: Indian Express

Ujaas Energy won a contract from West Bengal Renewable Energy Development Agency to install and commission 150 grid-connected rooftop solar plants, each with capacity of 10 kilowatts peak throughout the state West Bengal. Source: Business Standard

Best of the Rest

Assam

The Assam assembly passed a bill requiring government employees to look after their aged parents and siblings with disabilities or face a salary cut of 10 to 15 percent. The Assam Employees’ Parents Responsibility and Norms for Accountability and Monitoring Bill, 2017 allows covered family members to lodge complaints with the employee’s department if they are neglected at home. Source: Times of India

Goa

The Goa government released a start-up policy that aims to make the state feature among the top 25 destinations for early stage companies in Asia by 2025. The government hopes to create at least 100 successful ventures in the next five years and to develop at least 200,000 square feet for innovation facilities. Source: Money control In Detail: Goa Start-up Policy 2017

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