Update on India’s States: April 7, 2016

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Gujarat passes a new land acquisition law; Andhra and Karnataka hike electricity rates/ Gujarat lowers electricity rates; Bihar bans booze, Haryana liberalizes laws governing downsizing; Mehbooba Mufti sworn in as first female chief minister of Jammu & Kashmir; West Bengal and Assam complete first phase of elections; Delhi institutes a single-window clearance for building plans.

Center – State relations

President Pranab Mukherjee promulgated the Uttarakhand Appropriation (Vote on Account) Ordinance, 2016, which allows for withdrawals from the Consolidated Fund of the State of Uttarakhand. Uttarakhand was brought under President’s rule on March 28. Source: Economic Times

The Andhra Pradesh Legislative Assembly has increased the salaries, related benefits, and pension for its members under a bill that amends the Andhra Pradesh Payment of Salaries and Pension and Removal of Disqualification Act, 1953. It has raised salaries from $17,220 to $22,620, and the accommodation allowance and pension from $380 to $760. Source: Hindu Business Line

The Comptroller and Auditor General of India reported that Andhra Pradesh registered a revenue deficit of $3.7 billion during 2014-15, following eight consecutive years of revenue surplus. Source: Hindu Business Line

The Andhra Pradesh government will amend the Indian Registration Act, 1908, to prevent the common practice of selling land to multiple buyers. Andhra Pradesh will be the second state, after Madhya Pradesh, to amend the act. Source: Economic Times

The Andhra Pradesh Electricity Regulatory Commission (APERC) has approved a two per cent hike in energy charges for industrial and commercial consumers for year 2016-17. There is no increase in tariff for domestic consumers. Source: Sakshipost

In Detail: Tariff for Retail Sale of Electricity during FY 2016-17

Both houses of the Bihar legislature passed the new excise policy, which carries penalties including capital punishment for those manufacturing or trading illicit liquor. There will be a complete prohibition in rural areas, although some liquor will be sold in urban areas. Source: Business Standard

Delhi modified its building by-laws, incorporating a single-window system for building plans that will allow it to issue approvals within a month. Source: Economic Times

The New Delhi Municipal Council (NDMC) posted a record revenue collection of $515 million, surpassing the target for the financial year 2015-16 by $18.5 million. NDMC also posted the highest property tax collection in in five years, with an increase of 20 percent over the previous year. Source: Economic Times

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The Gujarat assembly passed a bill that amends the Land Acquisition and Rehabilitation Act (2013) by eliminating the requirement for a social impact assessment and consent clauses in the case of acquisition of land for public purposes and industrial corridors. Source: The Hindu

In Detail: Land Acquisition and Rehabilitation Act 2013

The government of Gujarat announced ‘Gujarat Waste to Energy Policy-2016’ and ‘Gujarat Small Hydel Policy 2016’ for power generation through solid waste and water resources. Both policies will be effective for five years. No duty will be charged on the electricity generated under these policies. Source: Desh Gujarat

In Detail: Gujarat Waste to Energy Policy 2016 and Gujarat Small Hydel Policy 2016

The Gujarat government announced a subsidy scheme for promoting the large-scale installation of grid-connected solar rooftop systems by private residential consumers. The scheme is to target 100,000 consumers across the state. In Detail: Subsidy for Residential Rooftop Solar Plants

The Gujarat Electricity Regulatory Commission (GERC) reduced power tariffs for residential and industrial consumers, creating a gross benefit of $63 million to consumers of state-owned power distribution companies. Source: Indian Express

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Under the Haryana Solar Power Policy for 2016, solar power plants will be mandatory for residential developments and industries, among other categories of development. The government is providing incentives for small investors in the renewable energy sector like being categorized under an industrial status, exemptions from changes in land use approvals and from charges associated with and training and development, and cross-subsidies. Source: Economic Times

In Detail: Haryana Solar Power Policy, 2016

The Haryana Vidhan Sabha passed the Industrial Disputes (Haryana Amendment) Bill 2016 along with three other bills related to labor. The amendment allows enterprises with up to 300 employees to lay off workers without the government’s permission. Source: Indian Express

The Haryana Assembly passed eight bills, including the Haryana Fire Service (Amendment) Bill 2016, which extends the renewal period for permits for high-rise buildings to five years from one; and the Haryana Development and Regulation of Urban Areas (Amendment) Bill 2016, which implements a new integrated licensing policy that will allow the government to access land for development without needing to purchase the land. Source: Outlook India

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The Karnataka Electricity Regulatory Commission (KERC) increased power tariffs by 9 percent for all electricity supply companies for 2016-17. Source: Financial Express


The Madhya Pradesh Assembly passed the Salary and Emoluments Bill, which increases the salaries of its members, and also passed the budget for the financial year 2016-17. Source: India Today

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KfW, Germany’s development bank, will provide loan assistance of $564 million to the Nagpur metro project. The project is being led by the Nagpur Metro Rail Corporation Limited (NMRCL). Source: Economic Times

In Detail: Press Release

State-owned power equipment maker Bharat Heavy Electricals Limited (BHEL) announced commissioning of its fifth 500 MW unit at Chandrapur Super Thermal Power Project (STPP). Source: Economic Times

The Maharashtra government has increased the ready reckoner rate by an average of nine percent in the state. This is expected to increase project and land costs, along with increasing construction expenses, stamp duty, and registration fees. Source: Hindu Business Line

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The Indian government and the World Bank signed an agreement for a loan facility of $250 million to support Rajasthan’s reform of its power distribution sector. Source: Money Control

In Detail: Press Release

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The Indian National Congress will contest 41 seats in the upcoming Tamil Nadu elections, as part of a seat-sharing agreement arranged with the Dravida Munnetra Kazhagam (DMK). Source: Hindustan Times

The Tamil Nadu Electricity Regulatory Commission (TNERC) has fixed the tariff for renewable energy.  The tariff for Solar PV projects was reduced by 27 percent. Source: Business Standard

In Detail: Wind Power Tariff and Solar Power Tariff

The Comptroller and Auditor General (CAG) reported that none of the 109 projects in various departments of Telangana which were scheduled to be completed by March 31, 2015 are finished, despite an expenditure of over $5 billion. The CAG also noted that the dozens of the state’s Public Sector Undertakings (PSU) were running at a total loss of $120 million.

Source: The Hindu, Hindu Business Line

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Nothing critical to report.

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The West Bengal and Assam election commissions reported voter turnout of 70 and 67 percent, respectively, in the first phase of state elections. The results will be announced on May 19. Source: Economic Times

Poll Dates

Assam – April 11

Kerala – May 16

Tamil Nadu – May 16

Puducherry – May 16

West Bengal – April 11, 17, 21, 25, 30, and May 5

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