Update on India’s States: December 7, 2016


The death of Jayalalithaa creates a void in Tamil Nadu politics; Andhra Pradesh, Telangana, and Maharashtra encourage a switch to a cashless economy; the BJP performs well in local body elections in Rajasthan and Gujarat; Tamil Nadu opens the world’s largest solar plant; and more.

Center–State relations

The chances for making the April 1, 2017 deadline for rollout of the Goods and Services Tax (GST) dimmed as the states and the central government failed to end the impasse over the crucial issue of the division of responsibility for tax administration between central and state authorities. Unless a decision is made soon, Parliament will not be able to vote on implementing legislation before the winter session ends on December 16. Source: Economic Times


The Andhra Pradesh Information Technology, Electronics and Communications Department announced a new program to reward individuals and villages who train others on how to use electronic payment systems. Under the scheme, unemployed youth, students, and others would be given an incentive of $0.22 for first time introduction of an individual/vendor to digital transactions and $0.29 if a minimum of five transactions are carried out within the first month. Source: The Hindu

A delegation of 53 French companies and organizations led by France’s ambassador to India, Alexandre Zieglar, visited Andhra Pradesh and met Chief Minister N. Chandrababu Naidu. The companies expressed interest in collaborating with the Andhra Pradesh government and making investments in smart cities, urban development, renewable energy, and sports. Source: News 18


The Bihar state assembly passed three bills — the Bihar State University (Amendment) Bill, 2016, the Bihar Motor Vehicle Taxation (Amendment) Bill, 2016 and the Aryabhatt Knowledge University (Amendment) Bill, 2016 — by voice vote. The Bihar Motor Vehicle Taxation (Amendment) Bill ends the practice of imposing tax on heavy vehicles on the basis of their chassis or body make. Tax will now be assessed based on the number of wheels. Source: Times of India


Nothing critical to report this week.


In an encouraging sign for the Bharatiya Janata Party (BJP) ahead of Gujarat elections next year, the party swept local bodies elections, capturing 107 seats out of a total 123. Gujarat chief minister Vijay Rupani hailed the victory as an endorsement of the surgical strikes across the Line of Control and demonetization. Source: Economic Times

Chinese conglomerate Sany Group signed a memorandum of understanding (MoU) with the Gujarat government to invest $2 billion over the next five years in various energy and infrastructure projects in the state. Source: Economic Times

State-owned power producer National Thermal Power Corporation (NTPC) Ltd said its board has approved its first wind energy project, a 50 megawatt (MW) project to be built in Gujarat at a cost of $48 million. The move will help NTPC reach its target of sourcing about 11 percent of its planned capacity from renewable energy by 2032. Source: Livemint


Chinese company Prestige Ocean Holding and Investments Limited signed an MoU with the Haryana Government to build 100 MW worth of solar power projects in the state. Source: Daily Pioneer

The Karnataka legislature concluded its winter session with the passage of several bills. The new laws include the Good Samaritan and Medical Professional Bill, which indemnifies first responders at road accidents. Source: The Hindu  Source: The Hindu

Samsung India and the Karnataka government signed an agreement to promote computer and digital education to underprivileged girl students in government schools in rural areas of the state. Source: Economic Times


Nothing critical to report this week.


The BJP made significant gains in local body elections for 147 municipal councils and 17 town councils. The BJP won 52 of the 147 municipal council president positions that were up for a vote and won nearly a quarter of all council seats. Source: Indian Express

The Maharashtra cabinet approved a plan to make bank deposits, rather than cash, the default mode of transfer to the beneficiaries of government welfare programs. The cabinet also made the Aadhaar Unique Identification Number the only criterion for establishing the identity of beneficiaries. Source: Indian Express


The BJP performed well in bypoll elections for local government bodies. The ruling party won 19 out of 37 seats, while Congress won 13. Source: Indian Express

The Rajasthan cabinet has approved the state’s first road safety policy, which will help curtail the increasing number of road accidents and pave the way for new institutional, legal, and financial measures for ensuring well-being of the people on the roads. Source: The Hindu


Tamil Nadu politics were in turmoil after the death of Chief Minister J Jayalalithaa at the age of 68. Long-time acolyte O Paneerselvam was sworn in as chief minister, but he is not seen as a true replacement for Jayalalithaa, who has maintained an iron grip on the ruling All-India Anna Dravida Munnetra Kazhagam for nearly 30 years. Source: The Hindu

India now boasts the world’s largest solar power plant with the completion of a new facility in Tamil Nadu. The new solar plant has a capacity of 648 MW, spread over t10 square kilometers (almost 4 square miles). Source: International Business Times


Bharat Heavy Electricals Ltd has commissioned the first unit of the 4×30 MW Pulichintala hydroelectric project on the Krishna river in Telangana. Source: Hindu Business Line

Telangana is undertaking a major push to promote cashless transactions in the state, making digital payments the mandatory payment mode in government market yards. The village of Ibrahimpur supposedly became the first in the state to go entirely cashless, with every resident having a bank account and a debit card. Source: Business Standard, News18


Nothing critical to report this week.


Nothing critical to report this week.

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