Update on India’s States: September 21, 2016

Andhra Pradesh attracted the most bank-financed investment of any state last year, while Maharashtra became the most indebted state; Madhya Pradesh is opening anti-corruption desks in government bureaus; the center and states could trade tax officials to implement the GST; Telangana releases the first four in a planned 10 IT policies; Uttar Pradesh’s Samajwadi Party is undergoing an election-eve breakdown; and more.

Center-State Relations

The central Ministry of Power has proposed giving states financial support to enable them to offer all residents new electricity connections free of cost. At present, only below poverty line families receive free electricity connections. Source: Economic Times

The Central Board of Excise and Customs is drawing up plans for a first-ever manpower-sharing exercise with states to help facilitate introduction of the Goods and Services Tax (GST) regime. The plan for the exercises envisages employing state tax officials at the center and sending central tax officials to work in state tax ministries. Source: Livemint

Andhra Pradesh attracted the largest share of institutionally funded investment in 2015-16, receiving investments of $3.3 billion of a total $21 billion invested throughout India. The state’s 15.8 percent share grew from 8.1 percent in the previous fiscal year. Source: Siasat In Detail: RBI report

Andhra Pradesh has secured a World Bank loan of $105 million to lay underground power cables in Visakhapatnam. The project will increase the city’s resilience to natural disasters. Source: Hindu Business Line In Detail: Press Release

Bharat Electronics Ltd said it is setting up an Advanced Night Vision Products factory at Krishna district. The factory will be the largest such facility in the country, covering an area of over 50 acres. Source: Financial Express

Andhra Pradesh became the second state in the country (after Gujarat) to achieve 100 percent electrification of households according to a new report by financial services firm JM Financials. Source: NDTV

Nothing critical to report this week.

Nothing critical to report this week.

A delegation led by Resident Commissioner Bharat Lal of the Gujarat government traveled to Houston, Texas to promote the state in the run-up to the 2017 Vibrant Gujarat summit. The delegation met with the Indo-American Chamber of Commerce of Greater Houston and with various business leaders. Source: Economic Times

Gujarat Dalit youth leader Jignesh Mevani said that Dalit activist groups will launch a railway blockade throughout the state from October 1. Source: Indian Express

The Haryana government has set the value added tax rate at 1 percent for real estate projects built before March 31, 2014. Source: Hindustan Times

Cellular phone manufacturer Gionee has signed an agreement with the Haryana government to set up a manufacturing unit at Faridabad with an initial investment of $75 million. Source: Economic Times

The Karnataka government has fast-tracked an 11 mile metro rail line that will connect Bangalore’s northeast and southeast corners. The $235 million line has now been included in the second phase of the metro rail project and is scheduled to be completed in two years. Source: Times of India

Continued unrest and a curfew in Bangalore forced several of the city’s IT firms to shut their offices, the third disruption in the last two weeks. Source: Hindu Business Line

Chief Minister Shivraj Singh Chouhan announced that Madhya Pradesh will open an anti-corruption desk in all government departments to provide internal oversight. Source: Times of India

Maharashtra chief minister Devendra Fadnavis is on a four-day tour of the U.S. West Coast. The highlight of the trip is a planned signing of a Memorandum of Understanding (MoU) with Oracle. Fadnavis is also expected to meet executives from other leading IT companies during the visit. Source: Deccan Chronicle

Maharashtra hiked the value added tax (VAT) on petrol by $0.22 per liter and on light vehicles, consumer durables, and furniture by around 1 percent. The tax hike on petrol alone is expected to generate additional revenue of $90 million. Source: Economic Times, Zeebiz

Chinese state councilor Yang Jiechi met with Maharashtra governor Chennamaneni Vidyasagar Rao in Mumbai. The two sides discussed progress in mutual cooperation, and Yang said that China is ready to increase cooperation with Maharashtra in the areas of technology, the information industry and climate change, among others. Source: Indian Express

Maharashtra is the most indebted state in the country, with total liabilities of $57 billion in fiscal year 2016, or 12 percent of all state debt. The state’s current debt has risen 34.5 percent in the past four years. Source: Indian Express

Nothing critical to report this week.

Opposition politicians led day-long demonstrations throughout Tamil Nadu to protest the Supreme Court’s award in the Cauvery River water-sharing dispute. Although protestors attempted to block roads and railways, the demonstrations generally ended peacefully. Source: The Hindu

Tamil Nadu chief minister J Jayalalithaa met with Pon. Radhakrishnan, union minister of state for road transport, highways and shipping, to discuss the $4 billion trans-shipment port at Enayam. The transport minister requested Jayalalithaa to support the start of a survey of the site prior to preparation of the detailed project report. Source: Business Standard

The Telangana government has released four new policies for cyber security, open data, data analytics, and data centers. The government is planning to issue six more policies dealing with the IT sector. Source: Hindu Business Line In Detail: Cyber Security, Open Data, Data Analytics, Data Centers

The government of Telangana signed an agreement with Cisco to cooperate on a host of initiatives, including Smart Cities, Internet of Things, cybersecurity, education and digitization of monuments. Cisco will open a Center of Excellence at the T-Hub incubator in Hyderabad. Source: Economic Times

Telangana and Goa signed an MoU governing cooperation in the development of Goa’s IT industry, assisting start-ups, and skills training. Telangana plans to set up an outpost of its T-Hub incubator in Goa to support the start-up ecosystem there. Source: Hindu Business Line In Detail: Press Release

The ruling Samajwadi Party has been riven by family tensions in recent weeks after party founder Mulayam Singh Yadav named his brother Shivpal Yadav state party chief, going over the head of chief minister Akhilesh Yadav, Mulayam’s son. After Akhilesh stripped Shivpal of his cabinet ministries, Shivpal began to purge the state party of Akhilesh’s loyalists. Uttar Pradesh goes to the polls in spring 2017. Source: Times of India, Indian Express

West Bengal chief minister Mamata Banerjee spoke with representatives of Swedish automobile giant Volvo and offered them 25 acres in the Panagarh industrial park to build a manufacturing unit. Source: Indian Express

The center has given in-principle approval to set up four industrial  parks for plastics in West Bengal. The parks will be about 25 acres each and cost $4.5 million to $6 million to develop, out of which the center will pay 40 percent. Source: Indian Express


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