Update on India’s States: July 1, 2016

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Andhra Pradesh joins power bailout scheme UDAY, Madhya Pradesh is second state to tax inter-state e-commerce, Maharashtra to work with USTDA to cut corruption in procurement, ADB approves loan to build bridge connecting Bihar and Nepal, Telangana and Hainan province become sister-provinces and Telangana becomes first state to set up an Intellectual Property Crime Unit, Uttar Pradesh is the only state not participating in center’s scheme to provide power to all households and more.

Center–State relations

Andhra Pradesh has become the thirteenth state to join the central government bailout scheme, Ujwal Assurance Discom Yojana (UDAY), for state power distribution companies. Andhra Pradesh’s participation in UDAY is expected to save the state $645 million. The center has also extended the deadline for states to sign up for UDAY to March 2017. Source: Economic Times Detailed: Press Release

The Expenditure Finance Committee (EFC) approved highway projects worth $880 million, including construction of highways across Maharashtra, Andhra Pradesh, Telangana, Sikkim, and Assam totaling 254 miles. Source: Business Standard

Andhra Pradesh chief minister Chandrababu Naidu is on a five-day visit to China. He will be participating in the World Economic Forum (WEF) Meeting as a contributor in the agriculture and smart cities discussions, meeting with trade and industry leaders, and signing a memorandum of understanding with Guizhou province to become a sister state to Andhra. Source: Indian Express, Economic Times, Economic Times

The Andhra Pradesh government will choose the master developer for Amaravati, the new state capital, by August 15. A proposal by a Singapore consortium has been approved by the state cabinet and the government has reached out to other companies to see if they can match or exceed the proposal by the consortium of companies from Singapore. Source: Hindu Business Line


The Asian Development Bank (ADB) has approved a $500 million loan to construct a bridge across the Ganga in Bihar. This bridge is expected to be completed in 2020, and will be the longest river bridge in the country. The bridge will also provide a transport link with Nepal. Source: Business Standard Detailed: Press Release


Nothing critical to report this week.

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Gujarat concluded an auction for four solar projects of 40 MW each at the Charanka Solar Park. All bidders proposed the same tariff of $0.065 per unit. Source: Economic Times

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Power sector workers across the state are planning to go on strike on June 29 and 30 in order to protest outsourcing of jobs in the power utilities. The government has invoked the Essential Services Maintenance Act (ESMA) for the next six months, directing all deputy commissioners and the director general of police to make necessary arrangements to ensure continuous supply of power for the state. Source: Business Standard

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The union Cabinet Committee on Economic Affairs has approved a highway project to widen the Hubli-Hospet section of National Highway 63 at an estimated cost of $333 million. Source: Economic Times

Detailed: Press Release

The Madhya Pradesh government has decided to impose a 6 percent tax on products that enter the state via e-commerce. Rajasthan recently imposed a similar tax. Source: DNA India

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Maharashtra is the first Indian state invited to participate in the United States Trade and Development Agency’s Global Procurement Initiative (GPI), which seeks to curb corruption in government spending in developing countries. GPI will train state officials to evaluate long-term investments in infrastructure and will help Maharashtra develop a procurement portal. Source: The Hindu

Governor C. V. Rao has stripped district collectors of the power to approve the sale of tribal land to non-tribals. Sellers will now have to seek permission from gram sabhas, local governing councils. Source: DNA India

The Maharashtra government has granted minority status to Jewish residents. This will allow Maharashtra’s Jewish population to take advantage of education and welfare benefits accorded to minorities. Source: Economic Times

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Rajasthan chief minister Vasundhara Raje launched several projects for Jaipur as part of the Smart City Mission. The projects include a rooftop solar power plant, restoration of 14 traditional stepwells, constructing the Sawan Badhon park at Ram Niwas Garden and setting up a real-time public information system at bus shelters. Source: India Today

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The Tamil Nadu assembly passed a bill that will allow mayors to be elected by councilors through indirect elections. The bill is meant to encourage better relationships between mayors and councilors for more efficient decision-making. Source: Economic Times


The Telangana government has signed a memorandum of understanding with Hainan province in China, establishing a sister-province relationship to collaborate in the fields of information technology and life sciences. Telangana’s T-Hub incubator signed an agreement to encourage start-ups in Hainan, and Apollo Hospitals committed to build a hospital there. Source: Times of India

Telangana has become the first state in the country to set up an Intellectual Property Crime Unit. The unit, inaugurated by United States Ambassador Richard Verma, is a collaborative effort between the cybercrime team of the Telangana police, the Telangana Film Chamber of Commerce, the film industry, and the state’s Information Technology Department. The unit will work to identify sites that upload pirated content, block them, and take action against offenders. Source: Hindu Business Line

Telangana chief minister K Chandrasekhar Rao has increased the power tariff by 7.5 percent, effective June 27. The hike mainly affects the commercial, IT, and industrial sectors, as 8 million domestic and agricultural consumers are already exempt. Source: News18

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Uttar Pradesh chief minister Akhilesh Yadav made changes to his state cabinet for the seventh time, adding three members and removing one member, ahead of the state assembly elections next year. Source: Hindu Business Line

Uttar Pradesh is the only state that has held back on joining the center’s “24×7 Power for All” initiative to provide continuous access to affordable electricity to all households and agricultural consumers. Source: Economic Times

Detailed: Press Release

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State finance minister Amit Mitra proposed to increase the state’s planned expenditure to $8.5 billion, to cut the government’s fiscal deficit to 1.96 percent of gross state domestic product (against 2.68 percent last year), and to create 2.2 million new jobs in the state. He hopes to fund these changes by increasing tax collections through reforms such as digitization of tax payment procedures and abolition of the tax dispute settlement commission. Source: Indian Express, Financial Express, Business Standard

In Detail: Budget 2016-2017

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