Update on India’s States: July 7, 2016

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U.S. undersecretary of state Thomas Shannon met with West Bengal chief minister Mamata Banerjee, NCAER offers new study on investment potential of states, Maharashtra’s plan to increase labor flexibility hits union buzzsaw, Andhra-Tamil Nadu dam dispute escalates, Telangana government delegation on a visit to Singapore and Malaysia, Chinese company to build 1,500-acre industrial township in Haryana, N. Chandrababu Naidu returns from China visit with deals in for investment in clean energy and infrastructure development, center relaxes environment clearances for Rajasthan’s small mineral mines.

Center–State relations

The National Council for Applied Economic Research (NCAER) issued new rankings of state investment potential, based on labor, infrastructure, economic climate, governance, and investor perceptions. When the perception measure was excluded, Gujarat came tops in the rankings, while Delhi ranked first when perceptions were included. Source: NDTV

In Detail: N-State Investment Potential Index- Full Report

The Cabinet Committee on Economic Affairs (CCEA) has approved a $890 million proposal to expand national highways in Punjab, Odisha, and Maharashtra. Source: Business Standard


Chief Minister N. Chandrababu Naidu signed six memoranda of understanding with China-based energy, construction, water management, and investment companies during his recent visit to China. Chinese smartphone maker Oppo is also considering opening a manufacturing facility in the state. Source: Economic Times, Economic Times


The Bihar cabinet has approved a $17 million project to install 3,000 solar pumps and one-kilowatt (kw) off-grid power plants in residential and commercial buildings. The project will be carried out by the Bihar Renewable Energy Development Authority (BREDA). Source: Times of India


The Delhi Transport Department has banned the retrofitting of compressed natural gas (CNG) kits in “in-use” cars following reports that manufacturers were supplying unapproved and uncertified equipment. The department will inspect all registered manufacturers in the city. Source: NDTV

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Gujarat’s banking sector experienced a significant rise in non-performing assets over the past year, growing from $2 billion to $3.7 billion. Most of the increase was due to bad loans to micro, small, and medium enterprises. Source: Business Standard

The center has referred Gujarat’s controversial land acquisition bill to a Joint Parliamentary Committee. The bill modifies the strict national law on land acquisition, relaxing a clause that requires governments exercising eminent domain to obtain the consent of the land owners and exempting projects (such as affordable housing and industrial corridors) from provisions of the central act. Source: Times of India

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The state cabinet of Haryana has approved new rules to bring into effect the Haryana Enterprises Promotion Act. The rules include single window clearance with online approvals and the appointment of a chief coordinator to expedite the implementation of the 359 Memoranda of Understanding signed during the March ‘Happening Haryana’ Global Investor’s Summit. Source: Times of India

The Haryana government signed an agreement with the China Fortune Land Development (CFLD) company to develop a new 1,500-acre industrial township in Sohna and Manesar (both in Gurugram) at a cost of $5 billion. Source: NDTV

Haryana will treat mega tourism projects as an industry for the purpose of land use rules. ‘Mega projects’ are those with investment over $15 million and over 500 employees. Source: Hindustan Times

The state cabinet has approved amending the court fees act to allow for an online payment mechanism for court fees. Source: Times of India

Over 23,000 employees of state power distribution companies (discoms) struck for two days to protest the privatization of discoms and outsourcing of operation and maintenance of some sub-stations. Source: Business Standard

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Five state-run power providers in Karnataka signed an agreement with the center’s Solar Energy Corporation of India (SECI) to purchase 1,000 megawatts of solar power to bridge the state’s current power shortage. Source: Livemint

The state cabinet has approved the setting up of a first-of-its-kind, industry-led company, Invest Karnataka, the primary purpose of which is to promote the state as an investment destination. Source: Hindu Business Line

The government will be able to provide property documents, income and tax certification and other essential government service at the village level through the offices of the state’s 6,019 gram panchayat (local government bodies). More than 40 million residents will now be able to access these services locally. Source: Economic Times


Madhya Pradesh chief minister Shivraj Singh Chouhan inducted three new members into the state cabinet and six ministers as ministers of state. Source: Financial Express

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Maharashtra remains the richest state in the country, with a gross state domestic product in 2014-15 of $141 billion (at constant prices), an increase of 5.7 percent since 2013-14. Source: Business Standard

In Detail: RBI Handbook of Statistics on Indian States

The Maharashtra government has decided to subsidize power tariffs for three years at an estimated cost of $150 million a year. This subsidy will be available to industries in the under-developed areas of Vidarbha, Marathwada and North Maharashtra. Source: Indian Express

Maharashtra has shelved plans to amend state labor laws after the plans met with fierce opposition from labor groups across the political spectrum. Source: Economic Times

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The Union Ministry of Environment and Forests is relaxing environment clearance norms for small mineral mines in Rajasthan, likely preventing closure of over 18,000 mines and quarries. Small mines (up to five hectares), and mining clusters (less than 25 hectares) will now be able to receive clearances from a district-level authority rather than the center, and micro mines (less than one hectare) will no longer need an environmental management plan to receive clearance. Source: Indian Express

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Tamil Nadu chief minister J. Jayalalitha has formally objected to Andhra Pradesh’s unilateral move to increase the height of the check dam on Palar river. The Palar river provides irrigation to 420,000 acres in Tamil Nadu and provides the water supply for the Kalpakkam power station. Source: Livemint


Telangana IT and Industry minister KT Rama Rao led a delegation to Singapore and Malaysia to meet with government and business leaders. The delegation met with Singapore’s Agency for Science, Technology and Research (A Star), which expressed interest in working with Telangana’s Research and Innovation Circle of Hyderabad (RICH). The Construction Industry Development Board of Malaysia also expressed interest in investing up to $1.5 billion in infrastructure projects in Telangana. Source: Hindu Business Line, Times of India

The Telangana government will offer additional rebates on power tariffs for textile and steel companies. Spinning mills and ferro alloy units, which employ over 45,000 workers, will be eligible for the lower tariff. Source: Hindu Business Line

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Nothing critical to report this week.

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Chief Minister Mamata Banerjee met with Undersecretary of State for Political Affairs Thomas Shannon to discuss opportunities for U.S. investment in West Bengal. Source: The Dollar Business

West Bengal is setting up a 2,600-acre manufacturing and industrial cluster in Purulia district. Source: Indian Express

 

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