Update on India’s States: May 18, 2016

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Five state election results on May 19! Andhra moves all procurement online; Karnataka’s buying more rooftop solar power (and Delhi may follow); Rajasthan identifies the districts for its experiment with private-sector power generation; West Bengal moves forward with mining some of its largest coal blocks.

Center-State relations

The center revoked President’s rule in Uttarakhand. Harish Rawat was reinstated as chief minister after winning a floor test to confirm Congress’s control of the state legislative assembly. Source: Economic Times

Kerala, Tamil Nadu and Puducherry concluded state legislative assembly polling with high voter turnouts. Puducherry had the largest turnout with 82 percent, followed by Kerala (71 percent) and Tamil Nadu (69.2 percent). Final results available on May 19. Source: Rediff

The Andhra Pradesh government issued a notification making e-procurement mandatory for government departments and public sector organizations. Under the new model, successful bidders will be notified within 45 days, and rural IT companies and medium and small enterprises will receive preference in procurement. Source: Economic Times

In Detail: Procurement Policy for e-Governance

The Bihar government has dissolved the cabinet subcommittees on agriculture, industry and human resources and replaced them with a new organization, the Bihar Vikas Mission (BVM), launched in January to promote agriculture, human development, infrastructure, and industry in the state. Source: Times of India

 

New Delhi is no longer the most polluted city in the world, according to new World Health Organization data. Delhi remains the most-polluted megacity. Source: Business Standard

The Delhi government has prepared a draft solar policy that will provide incentives for domestic consumers to install rooftop solar power plants. To be eligible, power plants must produce at least 1,000 kilowatt hours per year, and householders will receive 3 cents per unit of power generated. Source: The Hindu

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The Gujarat government announced its Agri Business Policy 2016, intended to promote the food processing industry, application of new techniques to convert agricultural waste into value-added products, and development of value chain of export of locally grown farm produce. New projects will receive 25 percent subsidy towards the total cost of establishing agro food processing units in the state. Source: Firstpost

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The Haryana Backward Classes Act, 2016 went into effect amidst threats of further protests by members of the Jat caste. The Act divides groups classified as “backward classes” into three blocks, with each block receiving different quotas for reserved places in educational institutions and government jobs. Source: Indian Express

In Detail: The Haryana Backward Classes (Reservation in Services and Admission in Educational Institutions) Act, 2016

The Haryana government announced an annual lending target for state-owned banks of $15.5 billion for 2016-17, up 17.1 percent from the previous fiscal year. Making it easier for citizens to obtain public loans is meant to reduce reliance on expensive private lenders. Source: Daily Pioneer

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Karnataka became the first state to allow owners of rooftop solar polar plants (domestic, hospitals and educational institutions) to increase the amount of solar power they sell back to the grid by up to 150 percent of the sanctioned amount. The state will buy the power at the rate of 10 cents per unit. In comparison, Gujarat only allows consumers to sell half of their sanctioned load. Source: Economic Times

Detailed: Press Release

Nothing critical to report this week.

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Nothing critical to report this week.

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The Rajasthan government is inviting bids from private sector companies to provide power distribution in Kota and Bharatpur districts. The winning bidders will be allowed to use existing infrastructure and collect tariffs from consumers at a rate set by the state. Source: Business Standard

Rajasthan will consolidate 86 laws into 16 in order to avoid redundancy and contradiction in its legal code. Source: Indian Express

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Tamil Nadu was the nation’s top producer of wind power in the previous fiscal year, followed by Maharashtra and Rajasthan. The state added 158 megawatts (MW) of new capacity for a total of over 7600 MW. Source: Times of India

Following complaints of vote-buying, the Election Commission of India announced that voting will be postponed to May 23 in two constituencies in Tamil Nadu. The results for the two constituencies will be announced on May 25. Source: Business Standard

The Telangana government has moved the process for receiving permission to fell trees online. Businesses seeking a permit will receive an answer within seven days. Source: Times of India

In Detail: Government order

The Telangana government will not help developers by directly buying land for solar power projects. At a meeting with the state government, several solar power producers sought an extension of the timeline to bring projects to completion, citing difficulties with land acquisition. Source: The Hindu Business Line

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Nothing critical to report this week.

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Mining will soon begin in some of West Bengal’s largest coal blocks as two state-owned utilities appointed private-sector subcontractors to operate the mines. Along with the new sources of coal for power generation, the state will gain revenues of at least $150 million a year. Source: Times of India

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