Update on India’s States: June 15, 2016

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ADB approves $100 million loan to Tamil Nadu for irrigation management, Karnataka to allow women to work at night, Delhi introduces new solar energy policy, Uber to have fare caps and no surge pricing to continue services in Karnataka, Maharashtra to potentially implement a uniform power tariff in Mumbai

Center – State relations

The empowered committee of state finance ministers met on June 14th to discuss the Goods and Services Tax (GST), among other issues. Sources within the meeting reported that all states except Tamil Nadu had approved the current draft of the bill introducing the GST. Source: Hindu Business Line

The Ministry of Mines reported that auctions of 17 mineral blocks in Gujarat, Maharashtra, Rajasthan, Odisha, Jharkhand, and Chhattisgarh were postponed due to insufficient bids. Source: Business Standard

The central government has amended the constitution to define “local resident” in light of the bifurcation of Andhra Pradesh in 2014. For the purposes of employment and education, a migrant to Andhra Pradesh from Telangana (and vice versa) will be considered a local of the state if he/she migrated within three years of the bifurcation. Source: Deccan Chronicle

Nothing critical to report this week.

The Delhi government introduced a new solar energy policy that provides generation-based incentives to residential producers, promotes net metering and grid-connectivity for all solar plants, and exempts producers from electricity tax and VAT for solar energy units produced and solar energy-related equipment. The policy also makes it mandatory for public-sector buildings to install rooftop solar plants. Source: Economic Times

Detailed: Delhi Solar Energy Policy 2015

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Nothing critical to report this week.

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The Haryana Government has drafted a new building code that will be applicable in urban areas. Developers will be allowed to start construction 15 days after applying for permits if authorities have not issued an objection. Source: KnnIndia

In Detail: Draft Uniform Building Code

IndiaBanners_CogitAsia_states_Karnataka

The Karnataka government announced a new retail trade policy that will allows establishments to be open longer, relaxes labor laws and stocking limits, and also allows women to work at night. The policy outlines plans to institute single-window systems and online registrations for permissions. Source: Business Standard

Gujarat-based Parampujya Solar won a contract to set up a 350 megawatt (MW) solar project in Karnataka, part of a 920 MW Solar Energy Corporation of India (SECI) tender. Source: Hindu Business Line

Karnataka’s Cabinet approved an amendment to the state’s Land Reforms Act that will help the government buy plots of up to 100 acres to support critical infrastructure projects like roads, railways, airport and power plants. Purchases will be negotiated by Land Acquisition Committees in each district. Source: Economic Times

The state government has decided to reserve five percent of land in future industrial estates for female entrepreneurs. Karnataka will also create two new industrial estates exclusively for women-owned businesses, one outside Bengaluru and the other either in Hubballi or Dharwad.

Source: Economic Times

Uber has indicated that for the present it will comply with new state regulations governing taxi aggregators that cap fares and prohibit surge pricing. While the company has appealed the new regulations, it has also applied for the licenses that will allow it resume services in the state. Source: Business Standard

Nothing critical to report this week.

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The Maharashtra government is blocking the construction of a new railway station that is meant to serve as the Mumbai terminus of the $14.6 billion bullet train between Mumbai and Ahmedabad. Maharashtra wants to build a finance center on the site and contends that building the station would deprive it of $1.5 billion in revenues. Source: Indian Express

The Maharashtra government has asked power firms and distribution utilities to provide reports on tariff rates in order to implement a uniform power tariff in Mumbai. Currently, the multiple private and state-run electricity distribution companies (discoms), all charge different rates in different parts of Mumbai. The new uniform tariff could apply to over 40 percent of Mumbai’s residential population. Source: Indian Express

IndiaBanners_CogitAsia_states_RajasthanNothing critical to report this week.

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Tamil Nadu will allow its domestic power plants to sell and outsource surplus power. The state’s power plants formerly were forced to cut off excess generation capacity in order to protect grid stability and reduce wastage but will now be able to sign contracts with consumers outside of the state. Source: Economic Times

The Information Technology sector in Tamil Nadu will now be covered under the Industrial Disputes Act of 1947, allowing workers in the sector to create formal labor unions. Workers in the sector were previously forbidden from forming unions, as the IT sector was classified as an essential service. Source: Business Standard

According to the Load Generation Balance Report 2016-17, Tamil Nadu has emerged as the state with the largest energy surplus, with an excess of 11 billion units of power. Source: Deccan Chronicle

The Asian Development Bank has approved a $100 million loan to Tamil Nadu to improve water management of the Vennar irrigation network by 2020. Work under the loan will not only involve upgrading infrastructure but also training in flood forecasting for state officials and local communities, as well planning and delivery of water services. Source: Hindu Business Line

The Telangana government has proposed a ‘Pharma City’ in Mucherla covering 11,883 acres. Development will involve building new road, rail, power, and water infrastructure, technical and testing labs, a pharma university and an integrated township. Source: Hindu Business Line

Detailed: Proposed Pharma City Project

Delegations from Korean companies including Posco and Hyundai toured Hyderabad as part of discussions with the Telangana government over creating an investment park exclusively for Korean companies. Source: Hindu Business Line

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State-owned power equipment manufacturer, Bharat Heavy Electric Limited commissioned all three supercritical units at the coal-powered Lalitpur Super Thermal Power Projects over the past 3 months. Source: Economic Times

IndiaBanners_CogitAsia_states_WestBengal

The West Bengal government has notified new regulations governing building density in private townships developments. The regulations require more green space, roads, and parking areas within a project area. According to the new guidelines, 25 percent of land in a development must be zoned for economic development, and 25 percent of all residential units must be reserved for affordable housing. Source: Times of India

West Bengal chief minister Mamata Banerjee officially endorsed the Good and Services Tax (GST) Amendment.  Source: Hindu Business Line

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